Chu, Angus C. (2009): Effects of Patent Policy on Income and Consumption Inequality in an R&D-Growth Model. Forthcoming in: Southern Economic Journal (April 2010)
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To analyze the effects of patent policy on growth and inequality, this paper develops a quality-ladder model with wealth heterogeneity and elastic labor supply. The model predicts that strengthening patent protection increases (a) growth by stimulating R&D and (b) income inequality by raising the return on assets. Elastic labor supply creates an additional effect on income inequality. As for consumption inequality, the effect is ambiguous and depends on the elasticity of intertemporal substitution. Calibrating the model to US data shows that strengthening patent protection increases income inequality by more than consumption inequality, and this pattern is consistent with the data.
|Item Type:||MPRA Paper|
|Original Title:||Effects of Patent Policy on Income and Consumption Inequality in an R&D-Growth Model|
|Keywords:||endogenous growth; heterogeneity; income inequality; patent policy|
|Subjects:||D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O34 - Intellectual Property and Intellectual Capital
|Depositing User:||Angus C. Chu|
|Date Deposited:||04. Apr 2009 18:11|
|Last Modified:||12. Feb 2013 18:03|
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Available Versions of this Item
Effects of Patent Policy on Income and Consumption Inequality in an R&D-Growth Model. (deposited 26. Aug 2008 07:30)
Effects of Patent Policy on Income and Consumption Inequality in an R&D-Growth Model. (deposited 06. Jan 2009 06:02)
- Effects of Patent Policy on Income and Consumption Inequality in an R&D-Growth Model. (deposited 04. Apr 2009 18:11) [Currently Displayed]
- Effects of Patent Policy on Income and Consumption Inequality in an R&D-Growth Model. (deposited 06. Jan 2009 06:02)