Effects of R&D policy on income inequality in a growth model with heterogeneous assets and skills

Ying Tung Chan, Yibai Yang and Zhijie Zheng

Economics Letters, 2022, vol. 213, issue C

Abstract: This study examines how two R&D policy instruments: patent protection and research subsidies, affect income inequality in an endogenous growth model with households who possess heterogeneity in assets and skills. We find that the effect of strengthening patent protection on income inequality can be positive or U-shaped, whereas the effect of increasing research subsidies can be positive, negative, or U-shaped; these effects are disambiguated by the comparison between asset heterogeneity and skill heterogeneity.

Keywords: Economic growth; Income inequality; Patent protection; R&D subsidies (search for similar items in EconPapers)
JEL-codes: D30 O31 O34 O40 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176522000544
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:213:y:2022:i:c:s0165176522000544

DOI: 10.1016/j.econlet.2022.110371

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().