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The Effects of Patent Protection: A Growth Model with Status Preference

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Author Info

  • Shiyuan Pan

    (Center for Research of Private Economy and School of Economics, Zhejiang University)

  • Mengbo Zhang

    (School of Economics, Zhejiang University)

  • Heng-fu Zou

    (Central University of Finance and Economics, CEMA)

Abstract

We build a growth model with status preference to explore the effects of patent protection on innovation, inequality and social welfare. The main results are as follows. There is a non-monotonic relationship between patent protection and innovation. In addition, the effect of patent protection on social welfare is non-monotonic when the strength of status preference is small, whereas patent protection lowers social welfare when the strength of status preference is large. Finally, strengthening patent protection enlarges wealth inequality when agents have different time and status preferences.

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Bibliographic Info

Paper provided by China Economics and Management Academy, Central University of Finance and Economics in its series CEMA Working Papers with number 574.

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Length: 22 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:cuf:wpaper:574

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Web page: http://cema.cufe.edu.cn/
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Keywords: Patent Protection; Status Preference; Innovation; Inequality; Social Welfare;

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