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on Economic Growth |
| By: | Klein, Michael |
| Abstract: | I develop an endogenous growth model that separates firm decisions to invent, patent, and commercialize new innovations. I use the model to examine how multiple dimensions of patent policy impact economic growth by shaping these relative incentives. I pay particular attention to the role of patenting requirements that dictate how far along the development process an inventor must progress to obtain a patent. The model formalizes how strengthening such requirements generates competing effects on economic growth; stronger requirements reduce ex ante research incentives by increasing the expected cost of patenting, but increase ex post incentives to fully develop patented inventions into commercial innovations by decreasing the additional cost associated with commercialization. Overall, my analysis supports the use of patenting requirements as an effective policy tool to improve economic outcomes by shifting incentives away from invention in the pursuit of patents and towards the development of commercial innovations. |
| Keywords: | Patent policy; Patenting requirements; Invention; Innovation; Economic growth |
| JEL: | O31 O34 O43 |
| Date: | 2024–09–16 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122283 |
| By: | Ryo Horii |
| Abstract: | To explain the observed stability in real GDP growth, endogenous growth theories typically need a knife-edge degree of externality, which is not supported by microlevel observations. We develop a model where a constant number of new goods are introduced per unit of time and focus on the movement of prices and quantities after introduction. In this environment, positive real GDP growth, as measured by SNA statistics, does not necessarily mean exponential growth in the quantity, quality, or variety of final outputs. We derive the conditions under which measured growth can be sustained, which are less restrictive than typical knife-edge assumptions. |
| Date: | 2023–09 |
| URL: | https://d.repec.org/n?u=RePEc:dpr:wpaper:1212rr |
| By: | Akira Kohsaka (Osaka School of International Public Policy (OSIPP), Osaka University) |
| Abstract: | Despite her recent “unprecedentedly” high and sustained economic growth, China has been long expected to suffer from sudden growth slowdown soon and eventually. We examine her growth pattern in the past three decades as income catching-up processes in developing economies such as those in East Asia, analyzing it in the conventional framework of economic growth based on an internationally comparable macroeconomic database. We find that her growth pattern is not exceptional in any sense, but very parallel with forerunners in East Asia, and that her growth is still in an early stage, so that we argue that her catching -up could be sustained, even if it were for possible short-term growth slowdowns. |
| Keywords: | neoclassical economic growth, growth decomposition, growth paths, China, East Asia |
| JEL: | E10 E2 E20 F3 O4 O40 O53 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:osp:wpaper:24e006 |
| By: | Tomás R. Martinez; Thiago Trafane Oliveira Santos |
| Abstract: | Assessments of the role played by misallocation in shaping total factorproductivity (TFP) have been hindered by constraints in the availability of firm-level data.This paper addresses this issue by developing a static Cournot model that primarily requires standard macroeconomic data to estimate market-power-driven misallocation.We apply this framework to decompose aggregate TFP into technology and allocative efficiency components from 1950 to 2019 for up to a hundred countries from the Penn World Table10.01. Utilizing this decomposition, we revisit key facts of economic growth. On the one hand, we evaluate the world income frontier as proxied by the US, finding that changes in misallocation can significantly impact short-run growth. On the other hand, we examine the economic performance around the world. We conclude misallocation enhances our understanding of cross-country income differences, eventhough a substantial unexplained portion persists. We also find a lack of convergence in allocative efficiency, suggesting market-power-driven misallocation is linked, in the long run, to long-lasting country-specific factors such as institutions. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bcb:wpaper:603 |
| By: | Schünemann, Johannes; Strulik, Holger; Trimborn, Timo |
| JEL: | D91 E21 O40 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302398 |
| By: | HARIT, ADITYA |
| Abstract: | This paper develops a dynamic general equilibrium (DGE) model to assess the impact of AI-driven automation on labor and capital allocation in an economy. The model considers the endogenous response of firms to task automation and labor substitution, showing how the increasing use of AI affects total output (GDP), wages, and capital returns. By introducing task complementarity and dynamic capital accumulation, the paper explores how automation impacts labor dynamics and capital accumulation. Key results show that while AI enhances productivity and GDP, it can also reduce wages and increase income inequality, with long-run effects that depend on the elasticity of substitution between labor and capital. |
| Keywords: | AI-driven Automation, Dynamic General Equilibrium, Labor Markets, Capital Accumulation, Income Distribution, Technological Change, Task Automation, Economic Inequality, Labor Demand, Capital Returns, Economic Policy, Neoclassical Growth Theory, Labor-Capital Dynamics. |
| JEL: | A10 A11 C0 C02 E1 E13 E6 E60 J3 J31 J4 J40 N3 P4 P48 |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122244 |
| By: | Jakob Vanschoonbeek |
| Abstract: | The recent rise and distinct geography of populism highlights the need for high resolution data on the economic and political landscapes and improved spatial political economy models that explain their interrelation. This paper shows that divergent development generates political externalities in lagging regions. To do so, it develops a dynamic spatial political economy model that integrates redistributive taxation and agglomerated economic growth in a standard economic geography framework. It finds that divergent development induces skill-biased labor mobility towards faster growing locations, simultaneously reducing their willingness to pay redistributive taxes and increasing their electoral influence on redistributive policy. To empirically validate and calibrate the model, the Spatial Political Economy in Europe Database (SPEED) is introduced, containing newly georeferenced electoral maps, political party classifications and gridded (per capita) GDP estimates for most European countries in the 17th release of the Constituency-Level Electoral Archive (CLEA). Instrumental variable regressions exploiting geographically-determined differences in economic growth potential confirm a strong constituency-level causal relation between underdevelopment and radical vote shares in the past two centuries. Counterfactual simulations suggests that policies that enhance labor mobility or income redistribution may both increase radical vote shares at least in the short run, as they risk fueling backlash in lagging and leading regions respectively. |
| Keywords: | Economic geography, political economy, political discontent, long term effects of divergent development, quantitative model |
| Date: | 2024–10–04 |
| URL: | https://d.repec.org/n?u=RePEc:ete:vivwps:750408 |