Template-type: ReDIF-Paper 1.0
Author-Name: Marchese, Carla 
Author-Email: carla.marchese@uniupo.it
Author-Name: Marsiglio, Simone 
Author-Email: simonem@uow.edu.au
Author-Name: Privileggi,Fabio 
Author-Email: fabio.privileggi@unito.it
Author-Name: Ramello, Giovanni B. 
Author-Email: giovanni.ramello@uniupo.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: Endogenous Recombinant Growth and Intellectual Property Rights.
Abstract: We show that, even in a framework in which monopolistic exploitation of patents does not occur, patents still 
give rise to serious drawbacks. We build on Weitzman’s (1998) recombinant growth model which provides a stylized but clear 
description of the formation of knowledge externalities. In our framework a benevolent government buys immediately
new patents in a competitive market and releases their contents for free. We show that inefficiencies nevertheless arise 
and welfare can be improved by correcting the market price through a tax-subsidy scheme. We characterize the (asymptotic) 
steady state equilibrium, and some properties of the transitional path. We show that if certain conditions are met,
then the economy will converge to its (asymptotic) balanced growth path, and along such a path growth will be independent 
of the policy parameter; conversely, transition dynamics are affected by the choice of the policy parameter. 
We then quantitatively analyze the effect of different policy interventions on welfare, and show that stricter tax
(weaker appropriability) regimes lead to higher social welfare.
Length: pages 31
Creation-Date: 2017-05
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2017dip/wp_20_2017.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:201720