Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148423
Authors: 
Radhakrishnan, Ravi
Year of Publication: 
2016
Series/Report no.: 
Economics Discussion Papers 2016-51
Abstract: 
This paper considers the prospect of a government patent buyout in a model of endogenous growth. To this end, the author modifies a standard quality ladder growth model by incorporating possibility of imitation, and rent protection activities (RPAs) by the innovator. The government finances the buyout by imposing a per unit sales-tax on the goods. The author shows that in this set-up, patent buyout by the government can lead to higher level of welfare without lowering an economy's growth rate along the balanced path. He highlights two sources of welfare improvement: elimination of monopoly pricing, and reduction in RPAs.
Subjects: 
innovation
imitation
patent
growth
JEL: 
O31
O34
O38
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

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