Aggregate Implications of Innovation Policy

Andrew Atkeson and Ariel Burstein

Journal of Political Economy, 2019, vol. 127, issue 6, 2625 - 2683

Abstract: We examine the quantitative impact of policy-induced changes in firms’ innovative investment on growth in aggregate productivity and output in a model that nests several of the canonical models. We isolate two statistics, the impact elasticity of aggregate productivity growth with respect to aggregate innovative investment and the degree of intertemporal knowledge spillovers in research, that shape the model’s predicted dynamic response to a change in the innovation intensity of the economy. Given measures of these statistics, there is only modest scope for increasing aggregate productivity and output over a 20-year horizon with uniform innovation subsidies to firms’ investments in innovation of a reasonable magnitude, but the welfare gains may be substantial.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
http://dx.doi.org/10.1086/701823 (application/pdf)
http://dx.doi.org/10.1086/701823 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Aggregate implications of innovation policy (2015)
Working Paper: Aggregate implications of innovation policy (2011)
Working Paper: Aggregate Implications of Innovation Policy (2011)
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:ucp:jpolec:doi:10.1086/701823

Access Statistics for this article

More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().