We study the effects of uncertainty on the allocation of resources in the standard, static, general equilibrium, two-sector, two-factor model. The elasticity of substitution in production vs that in consumption plays a key role in determining whether uncertainty attracts or repels resources....

Financial constraints are often thought as representing a barrier to entry for new firms, thus potentially limiting competition in product markets. We investigate the relationship between finance and product market competition in the context of a general equilibrium, two-sector model. The...

We study the effects of uncertainty on the allocation of resources in the standard, static, general equilibrium, two-sector, two-factor model. The elasticity of substitution in production vs that in consumption plays a key role in determining whether uncertainty attracts or repels resources....

A difficulty with industrial policy regards the uncertainty about infant industries' long term potential. We argue that alternative commercial policy instruments may be associated with differences in the speed and accuracy with which the government learns about industry type

Financial constraints are commonly thought as representing a barrier to entry and expansion for new and small firms, thus potentially limiting competition in product markets. We investigate the role of financial constraints for product markets in the context of a general equilibrium, two-sector...