Cultural preference on fertility and the growth and welfare effects of intellectual property rights

Chu, Angus C. and Cozzi, Guido (2011): Cultural preference on fertility and the growth and welfare effects of intellectual property rights.

Abstract

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
• Language: English
• Keywords: economic growth; endogenous fertility; patent policy
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O34 - Intellectual Property and Intellectual Capital; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General

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