 ENDOGENOUS RECOMBINANT GROWTH AND INTELLECTUAL PROPERTY RIGHTSCarla Marchese (), Simone Marsiglio, Fabio Privileggi and Giovanni Ramello () Macroeconomic Dynamics, 2019, vol. 23, issue 5, 2035-2067 Abstract: We show that, even in a framework in which monopolistic exploitation of patents does not occur, patents still give rise to serious drawbacks. We rely on a recombinant growth framework that provides a stylized but clear description of the formation of knowledge externalities. In our setting a benevolent government buys immediately new patents in a competitive market and releases their contents for free. We show that inefficiencies nevertheless arise and welfare can be improved by correcting the market price through a tax–subsidy scheme. We characterize the (asymptotic) steady-state equilibrium, and some properties of the transitional path. We show that if certain conditions are met, then the economy will converge to its (asymptotic) balanced growth path, and along such a pathgrowth will be independent of the policy parameter; conversely, transition dynamics are affected by the choice of the policy parameter. We then quantitatively analyze the effect of different policy interventions on welfare, and show that stricter tax (weaker appropriability) regimes lead to higher social welfare. Date: 2019 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cup:macdyn:v:23:y:2019:i:05:p:2035-2067_00 Access Statistics for this article More articles in Macroeconomic Dynamics from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK. |
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