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An open-economy equilibrium model is derived to investigate the effects of energy policy on the U.S. economy, with emphasis on corn-based ethanol. A second best policy of a fuel tax and ethanol subsidy is found to approximate fairly closely the welfare gains associated with the first best policy of an optimal carbon tax and tariffs on traded goods. The(More)
The quest for biorenewable energy sources is held to justify a number of government interventions, including support policies for biofuels such as those responsible for the recent rapid growth of US ethanol production. This article provides an analytical assessment of such policies. We construct a general equilibrium, open economy model that captures the(More)
Most patent pools are formed in the shadow of patent litigation, either as an attempt to settle disputes in regard to conflicting infringement claims and the validity of patents or as a preemptive measure to prevent potential litigation. To reflect this reality, I develop a simple framework to analyze the incentives to form a patent pool or engage in(More)
A partial equilibrium four-region world trade model for the soybean complex is developed in which Roundup Ready (RR) products are weakly inferior substitutes to conventional ones, RR seeds are priced at a premium, and costly segregation is necessary to separate conventional and biotech products. Solution of the calibrated model illustrates how incomplete(More)
The economics of geographical indications (GIs) is assessed within a vertical product differentiation framework that is consistent with the competitive structure of agriculture. It is assumed that certification costs are needed for GIs to serve as (collective) credible quality certification devices, and production of high-quality product is endogenously(More)