Chu, Angus C. and Cozzi, Guido (2011): Cultural preference on fertility and the growth and welfare effects of intellectual property rights.
This is the latest version of this item.
Download (206Kb) | Preview
How does patent policy affect economic growth through human capital accumulation and endogenous fertility? In this study, we develop a scale-invariant R&D-based growth model to analyze an unexplored interaction between intellectual property rights, endogenous fertility, human capital accumulation and economic growth. We find that strengthening patent protection has (a) a positive effect on technological progress, (b) a negative effect on human capital accumulation through a higher rate of fertility, and (c) an ambiguous overall effect on economic growth. Furthermore, a stronger cultural preference for fertility strengthens the negative effect of patent policy relative to its positive effect on economic growth. Finally, we calibrate the model to provide a quantitative analysis on the relative strength of these opposing effects of patent policy.
|Item Type:||MPRA Paper|
|Original Title:||Cultural preference on fertility and the growth and welfare effects of intellectual property rights|
|Keywords:||economic growth; endogenous fertility; patent policy|
|Subjects:||O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O34 - Intellectual Property Rights
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
|Depositing User:||Angus C. Chu|
|Date Deposited:||05. Jun 2011 15:10|
|Last Modified:||13. Feb 2013 09:10|
Acemoglu, D., and Akcigit, U., 2011. Intellectual property rights policy, competition and innovation. manuscript.
Aghion, P., and Howitt, P., 1992. A model of growth through creative destruction. Econometrica 60, 323-351.
Alesina, A., and Giuliano, P., 2010. The power of the family. Journal of Economic Growth 15, 93-125.
Ashraf, Q., and Galor, O., 2007. Cultural assimilation, cultural diffusion and the origin of the wealth of nations. CEPR Discussion Papers No. 6444.
Barro, R., and Becker, G., 1989. Fertility choice in a model of economic growth. Econometrica 57, 481-501.
Bessen, J., and Meurer, M., 2008. Patent Failure: How Judges, Bureaucrats, and Lawyers Put Innovators at Risk. Princeton University Press.
Boldrin, M., and Levine, D., 2008. Against Intellectual Monopoly. Cambridge University Press.
Chu, A., 2007. Confidence-enhanced economic growth. The B.E. Journal of Macroeconomics (Topics), Vol. 7, Article 13.
Chu, A., 2009. Effects of blocking patents on R&D: A quantitative DGE analysis. Journal of Economic Growth 14, 55-78.
Chu, A., 2011. The welfare cost of one-size-fits-all patent protection. Journal of Economic Dynamics and Control 35, 876-890.
Chu, A., and Cozzi, G., 2011. Cultural preference on fertility and the long-run growth effects of intellectual property rights. MPRA Papers No. 29059.
Connolly, M., and Peretto, P., 2003. Industry and the family: Two engines of growth. Journal of Economic Growth 8, 115-148.
Cozzi, G., 2001. Inventing or spying? Implications for growth. Journal of Economic Growth 6, 55-77.
Cozzi, G., 2007. The Arrow effect under competitive R&D. The B.E. Journal of Macroeconomics (Contributions), Vol. 7, Article 2.
Cozzi, G., Giordani, P., and Zamparelli, L., 2007. The refoundation of the symmetric equilibrium in Schumpeterian growth models. Journal of Economic Theory 136, 788-797.
Cozzi, G., and Spinesi, L., 2006. Intellectual appropriability, product differentiation, and growth. Macroeconomic Dynamics 10, 39-55.
Dinopoulos, E., and Thompson, P., 1998. Schumpeterian growth without scale effects. Journal of Economic Growth 3, 313-335.
Fernandez, R., and Fogli, A., 2009. Culture: An empirical investigation of beliefs, work, and fertility. American Economic Journal: Macroeconomics 1, 146-177.
Furukawa, Y., 2007. The protection of intellectual property rights and endogenous growth: Is stronger always better? Journal of Economic Dynamics and Control 31, 3644-3670.
Furukawa, Y., 2010. Intellectual property protection and innovation: An inverted-U relationship. Economics Letters 109, 99--101.
Futagami, K., and Iwaisako, T., 2007. Dynamic analysis of patent policy in an endogenous growth model. Journal of Economic Theory 132, 306-334.
Galor, O., and Moav, O., 2002. Natural selection and the origin of economic growth. Quarterly Journal of Economics 117, 1133-1192.
Grossman, G., and Helpman, E., 1991. Quality ladders in the theory of growth. Review of Economic Studies 58, 43-61.
Growiec, J., 2006. Fertility choice and semi-endogenous growth: Where Becker meets Jones. The B.E. Journals of Macroeconomics (Topics), Vol. 6, Article 10.
Ha, J., and Howitt, P., 2007. Accounting for trends in productivity and R&D: A Schumpeterian critique of semi-endogenous growth theory. Journal of Money, Credit and Banking 39, 733--774.
Horii, R., and Iwaisako, T., 2007. Economic growth with imperfect protection of intellectual property rights. Journal of Economics 90, 45-85.
Horowitz, A., and Lai, E., 1996. Patent length and the rate of innovation. International Economic Review 37, 785-801.
Iwaisako, T., and Futagami, K., 2003. Patent policy in an endogenous growth model. Journal of Economics 78, 239-258.
Jaffe, A., and Lerner, J., 2004. Innovation and Its Discontents: How Our Broken System is Endangering Innovation and Progress, and What to Do About it. Princeton University Press.
Jones, C., 1995. R&D-based models of economic growth. Journal of Political Economy 103, 759-784.
Jones, C., 1999. Growth: With or without scale effects. American Economic Review 89, 139-144.
Jones, C., 2001. Was an industrial revolution inevitable? Economic growth over the very long run. The B.E. Journals of Macroeconomics (Advances), Vol. 1, Article 1.
Jones, C., 2003. Population and ideas: A theory of endogenous growth. In Aghion, P., Frydman, R., Stiglitz, J., and Woodford, M., (eds.) Knowledge, Information, and Expectations in Modern Macroeconomics: In Honor of Edmund S. Phelps. Princeton University Press.
Jones, C., and Williams, J., 2000. Too much of a good thing? The economics of investment in R&D. Journal of Economic Growth 5, 65-85.
Judd, K., 1985. On the performance of patents. Econometrica 53, 567-586.
Kortum, S., 1992. Inventions, R&D and industry growth. Ph.D. Dissertation, Yale University.
Kortum, S., 1997. Research, patenting, and technological change. Econometrica 65, 1389-1419.
Laincz, C., and Peretto, P., 2006. Scale effects in endogenous growth theory: An error of aggregation not specification. Journal of Economic Growth 11, 263-288.
Laitner, J., and Stolyarov, D., 2011. Derivative ideas and the value of intangible assets. manuscript.
Li, C.-W., 2001. On the policy implications of endogenous technological progress. Economic Journal 111, C164-C179.
Nordhaus, W., 1969. Invention, Growth, and Welfare: A Theoretical Treatment of Technological Change. The MIT Press.
O'Donoghue, T., and Zweimuller, J., 2004. Patents in a model of endogenous growth. Journal of Economic Growth 9, 81-123.
Peretto, P., 1998. Technological change and population growth. Journal of Economic Growth 3, 283-311.
Peretto, P., 1999. Cost reduction, entry, and the interdependence of market structure and economic growth. Journal of Monetary Economics 43, 173-195.
Razin, A., and Ben-Zion, U., 1975. An intergenerational model of population growth. American Economic Review 65, 923-933.
Scotchmer, S., 2004. Innovation and Incentives. The MIT Press.
Segerstrom, P., 1998. Endogenous growth without scale effects. American Economic Review 88, 1290-1310.
Stokey, N., and Rebelo, S., 1995. Growth effects of flat-rate taxes. Journal of Political Economy 103, 619-550.
Strulik, H., 2005. The role of human capital and population growth in R&D-based models of economic growth. Review of International Economics 13, 129-145.
Tabellini, G., 2010. Culture and institutions: Economic development in the regions of Europe. Journal of the European Economic Association 8, 677-716.
Yip, C., and Zhang, J., 1997. A simple endogenous growth model with endogenous fertility: Indeterminacy and uniqueness. Journal of Population Economics 10, 97-110.
Young, A., 1998. Growth without scale effects. Journal of Political Economy 106, 41-63.
Available Versions of this Item
Cultural preference on fertility and the long-run growth effects of intellectual property rights. (deposited 24. Feb 2011 18:35)
- Cultural preference on fertility and the growth and welfare effects of intellectual property rights. (deposited 05. Jun 2011 15:10) [Currently Displayed]