This paper studies the welfare consequences of a government regulation that forces a patented equipment to be supplied by a number of independent producers. On the one hand, such a regulation hurts the value of a patent and therefore reduces activities in the RaD sector. On the other hand, the enhanced competition for the equipment improves efficiency in the manufacturing sector. Should monopolies protected by intellectual property rights be broken up? The answer is anoa in a Romer-type growth model, but there is sufficient reason to believe that the answer could be ayesa in a model advocated by Jones (1995).12 Mino K., 1996, aAnalysis of a two-sector model of endogenous growth with capital income taxation, aquot; International ... aquot;A Note on the Time-Elimination Method for Solving Recursive Economic Models, a NBER Technical Working Paper, No. 116anbsp;...
|Title||:||To "B" or not to "B": A Welfare Analysis of Breaking Up Monopolies in an Endogenous Growth Model (EPub)|
|Publisher||:||International Monetary Fund - 2000-11-01|