Welfare-maximizing patent length in a dynamic general equilibrium model

Tatsuro Iwaisako

Oxford Economic Papers, 2025, vol. 77, issue 1, 19-41

Abstract: This article examines analytically the welfare-maximizing patent length in a dynamic general equilibrium model which is based on a variety expansion R&D-based growth model. The results show that if the elasticity of substitution among the intermediate goods is higher, that is, the price elasticity of demand is higher, the welfare-maximizing patent length is shorter. This article also examines the welfare-maximizing mix of patent length and breadth, and numerically obtains similar results, that is, a higher elasticity of substitution shortens the welfare-maximizing length.

Keywords: patent protection; research and development; economic growth; dynamic general equilibrium (search for similar items in EconPapers)
JEL-codes: L50 O33 O34 O41 (search for similar items in EconPapers)
Date: 2025
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