Are All Technological Improvements Beneficial? Absolutely Not
AbstractThis paper shows, using a simple model, that wasteful innovations may result in a loss-loss situation where no country experiences an increase in welfare. If some countries introduce innovations that result in harmful effects on other countries, it may cause the adversely affected countries to retaliate by imposing impediments to international trade. In a globalized and integrated World economy, such policies can only harm the countries involved. Thus, it is in both countries' best interest to encourage sustainable coordination between policies in order to better their own citizens, as well as the World's aggregate welfare.
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Bibliographic InfoPaper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 13-027.
Length: 39 pages
Date of creation: 19 Jun 2013
Date of revision:
International Trade; Samuelson; Gainers and Losers from Trade; Technological Improvements; Concealed Technological Improvements; Pareto Improvements in Production and Consumption; Nash Bargaining Process; Sleeping Patents; Rest of the World; Terms of Trade; Distributive Justice; China; United States.;
Find related papers by JEL classification:
- F0 - International Economics - - General
- F1 - International Economics - - Trade
- O - Economic Development, Technological Change, and Growth
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
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