The growth and welfare analysis of patent and monetary policies in a Schumpeterian economy
Yibai Yang () and
International Review of Economics & Finance, 2017, vol. 52, issue C, 409-426
This study compares the growth and welfare implications of patent policy and monetary policy in a Schumpeterian growth model where the market power of firms is subject to patent breadth whereas consumption and R&D investment are subject to cash-in-advance (CIA) constraints, respectively. The main findings are as follows. First, monetary policy is more effective than patent policy and the mix of these policies in terms of stimulating economic growth if initial patent protection in the economy is strong. Second, the welfare difference between patent policy and monetary policy is ambiguous, depending on the levels of predetermined instruments under these policies. However, these policy regimes are (weakly) dominated by their combination in terms of raising social welfare.
Keywords: Economic growth; Patent policy; Monetary policy; Social welfare (search for similar items in EconPapers)
JEL-codes: O30 O41 E41 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:52:y:2017:i:c:p:409-426
Access Statistics for this article
International Review of Economics & Finance is currently edited by H. Beladi and C. Chen
More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Haili He ().