|
on Economic Growth |
| By: | Rudra Narayan Kushwaha (Indira Gandhi Institute of Development Research); Taniya Ghosh (Indira Gandhi Institute of Development Research) |
| Abstract: | The paper analyzes how patent-economic growth relationship changes as population dynamics change. The literature on this relationship has not focused on the role of population growth rate, despite data showing that countries' population growth trends have recently shifted from positive to declining and even negative. We obtain three main results: First, we derive unique growth maximizing patent protection policies for different population growth scenarios. When the population growth rate is above (exactly at) the critical value, the growth-maximizing patent breadth is incomplete (complete), with finite (infinite) patent length. However, when the population growth rate is negative and below the critical value, then growth-maximizing patent breadth can extend beyond complete. Second, our model validates Jones (2022)'s Empty Planet result, as the unique growth-maximizing patent protection policy exists, and thus the steady state per capita output growth exists even with a negative population growth rate. Third, our model predicts that a country with a lower rate of population growth should have a more stringent growth-maximizing patent protection policies than others. The findings suggest that while formulating growth-maximizing patent protection policies, countries should consider shifting population dynamics. |
| Keywords: | Economic Growth, Overlapping Generations Model, Patents, Physical Capital, Population, Variety Expansion Model |
| JEL: | O31 O34 O40 |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:ind:igiwpp:2023-05 |
| By: | DAE HYUNG WOO (Yonsei University); JIN SEO CHO (Yonsei University) |
| Abstract: | This paper examines the effects of precolonial and colonial legacies on the current economic growth rates of ex-colonies. Precolonial legacies have significant positive relationships with current economic growth rates, as well as high model explanatory power. In contrast, colonial legacies have ambivalent effects. Here, Neo-European countries have benefited from the dominant positive effects of their colonial legacy, but that Sub-Saharan African ex-colonies are dominated by negative effects. In the case of Korea, the overall effect of the colonial legacy is not substantially different from zero, and the country’s current high economic growth rate originates mainly from the precolonial legacy. |
| Keywords: | Precolonial legacy; positive and negative effects of colonial legacy; current economic growth rate; ex-colonies; Neo-European economic growth rate; Sub-Saharan African economic growth rate; Korean economic growth rate. |
| JEL: | N10 O40 O47 O50 |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:yon:wpaper:2023rwp-218 |
| By: | Andrea Borsato; Andre Lorentz |
| Abstract: | This paper contributes to the literature around the Kaldor-Verdoorn law and analyses the impact of robotisation on the channel through which the law shapes labour-productivity growth. We start with a simple evolutionary interpretation of the law that combines Kaldorian and Post-Keynesian arguments with the neo-Schumpeterian theory of innovation and technological change. Then we apply a GMM estimator to a panel of 17 industries in 25 OECD capitalist economies for the period 1990-2018. After elaborating on the general evidence of the Kaldor-Verdoorn law in the sample, we investigate the effect of increasing robotisation. The estimates suggest that for industries with a higher-than-average robot density, the increasing adoption of robots weakens, at least, the meso-economic channel that relates productivity growth to mechanisation. Yet, the higher degree of robotisation strengthens the mechanism that links labour productivity growth at the industrial level to the macro-level dynamic increasing returns to scale that emerge from a general expansion of economic activities through the many interactions between sectors. Such results are in agreement with the empirical literature that suggests different impacts from robotisation on the basis of the level of economic activity considered. |
| Keywords: | Labour productivity, Kaldor-Verdoorn law, Robotisation, GMM. |
| JEL: | J23 O33 O47 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2023-12 |
| By: | Tomohiro Hirano; Alexis Akira Toda |
| Abstract: | Asset price bubbles are situations where asset prices exceed the fundamental values defined by the present value of dividends. This paper presents a conceptually new perspective on bubbles: the necessity of asset price bubbles. We establish the Bubble Necessity Theorem in a plausible general class of economic models: in economies with faster long run economic growth ($G$) than dividend growth ($G_d$) and long run bubbleless interest rate ($R$) below dividend growth, equilibria exist but none of them are fundamental or asymptotically bubbleless. The necessity condition $R |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2305.08268 |
| By: | Ugo M. Gragnolati; Alessandro Nuvolari |
| Abstract: | We study the determinants of the spatial distribution of patent inventors at the county level for Great Britain between 1700-1850. Our empirical analysis rests on the localization model by Bottazzi et al. (2007) and on the related estimation procedure by Bottazzi and Gragnolati (2015). Such an approach helps in particular to discriminate the role of localized externalities against other descriptors of county attractiveness. Our results show that, while the underlying geography of production remained a strong determinant of inventor location all throughout the industrial revolution, the effect of localized externalities among patent inventors went from being nearly absent in the early phases of industrialization to becoming a major driver of inventor location. In particular, local interactions among the ''mass'' of generic inventors turn out to be at least as important as interactions with ''elite'' inventors. |
| Keywords: | Inventor location; Patents; Localized externalities; Industrial Revolution. |
| Date: | 2023–06–05 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2023/26 |