To B or Not To B: A Welfare Analysis of Breaking Up Monopolies in an Endogenous Growth Model
AbstractThis 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 R&D 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 "no" in a Romer-type growth model, but there is sufficient reason to believe that the answer could be "yes" in a model advocated by Jones (1995).
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Bibliographic InfoPaper provided by EconWPA in its series GE, Growth, Math methods with number 0207002.
Length: 17 pages
Date of creation: 21 Aug 2002
Date of revision:
Note: Type of Document - Acrobat PDF; prepared on PC; to print on HP; pages: 17; figures: none
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R&D; Endogenous Growth; Competition Policy;
Other versions of this item:
- Danyang Xie, 2000. "To "B" or not to "B": A Welfare Analysis of Breaking Up Monopolies in an Endogenous Growth Model," IMF Working Papers 00/189, International Monetary Fund.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-08-29 (All new papers)
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