Chu, Angus C. and Leung, Charles Ka Yui and TANG, C. H. Edward (2012): Intellectual property rights, technical progress and the volatility of economic growth.
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In this note, we analyze the effects of intellectual property rights on the volatility of economic growth. Our analysis is motivated by the observation that the strengthening of patent protection and the increase in R&D in the US coincide with a reduction in growth volatility beginning in the mid 1980’s. To analyze this phenomenon, we develop an R&D-based growth model with aggregate uncertainty in the innovation process and apply the model to ask whether increasing patent strength and R&D can lead to a significant reduction in growth volatility. We find a small but non-negligible effect that explains no less than 10% of the observed reduction in growth volatility in the US.
|Item Type:||MPRA Paper|
|Original Title:||Intellectual property rights, technical progress and the volatility of economic growth|
|Keywords:||Economic growth; Intellectual property rights; Growth volatility|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
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 > O33 - Technological Change: Choices and Consequences; Diffusion Processes
|Depositing User:||Chi Ho TANG|
|Date Deposited:||16. Apr 2012 12:41|
|Last Modified:||14. Feb 2013 19:46|
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