Rapid automation in manufacturing has raised pressing questions public and policy discourse regarding the effects of labor-eliminating technical progress an industry. We address implications a technology adopted for factor price changes, skilled–unskilled wage gap, trade policies intended to protect workers. Using otherwise traditional multisector general equilibrium model, we derive conditions...

Governments have strong incentives to allow their inventors free ride on foreign technologies. They can achieve this result by discriminating against foreigners in the patent system—by refusing grant a for inventions. International law treaties forbid practice, which may lower global innovation and hurt international trade. Using data half million inventions submitted Chinese office, we find ro...