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Full-Text Articles in Macroeconomics
Market For Patents, Monopoly, And Misallocation, Shang-Jin Wei, Jianhuan Xu, Ge Yin, Xiaobo Zhang
Market For Patents, Monopoly, And Misallocation, Shang-Jin Wei, Jianhuan Xu, Ge Yin, Xiaobo Zhang
Research Collection School Of Economics
The paper studies a possible “dark side” of patent trade in enhancing the market power of monopolists. We explore the different effects of China’s 2008 tax reform on patent innovations and sales across industries. In particular, although easier patent trade leads to more patent creation, the new patents are disproportionately connected to existing monopolists and are more likely to be acquired by them. Using an endogenous growth model with patent trade, we show that subsidizing patent trade could skew investors’ research to appeal to the monopolists, increase the latter’s monopoly power, and reduce social welfare. An optimal subsidy policy for …
The Elasticity Of Substitution And Endogenous Growth, Hing-Man Leung
The Elasticity Of Substitution And Endogenous Growth, Hing-Man Leung
Research Collection School Of Economics
The endogenous growth literature focuses exclusively on Cobb-Douglas. Elasticities other than unity are ignored. A recent paper by Klump and Grandville (2000) examined other elasticities but assumed an exogenous saving rate. By contrast, this paper studies elasticity and endogenous growth. Endogeneity is important since elasticity preserves capital’s productivity and encourages saving. Two models are presented. The first assumes exogenous technological change. We find elasticity to have a positive level effect on income. No rate of growth effect is found. The second model allows learning by doing from capital accumulation. In addition to the level effect, rate of growth effects are …