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Are intellectual property rights unfair?

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  • Saint-Paul, Gilles

Abstract

If redistribution is distortionary, and if the income of skilled workers is due to knowledge-intensive activities and depends positively on intellectual property, a social planner which cares about income distribution may in principle want to use a reduction in Intellectual Property Rights (IPRs) rather than redistributive transfers. On the one hand, such a reduction reduces statis inefficiency. On the other hand, standard redistribution also reduces the level of R&D because it distorts occupational choice. We study this possibility in the context of a model with horizontal innovation, where the government, in addition to taxes and transfers, controls the fraction of innovations that are granted patents. The model predicts that standard redistribution always dominates limitations to IPRs.
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  • Saint-Paul, Gilles, 2004. "Are intellectual property rights unfair?," Labour Economics, Elsevier, vol. 11(1), pages 129-144, February.
  • Handle: RePEc:eee:labeco:v:11:y:2004:i:1:p:129-144
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    2. Saint-Paul, Gilles, 2001. "Distribution and Growth in an Economy with Limited Needs," IZA Discussion Papers 273, Institute of Labor Economics (IZA).
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    Cited by:

    1. Alireza Naghavi & Chiara Strozzi, 2011. "Intellectual Property Rights, Migration, and Diaspora," Working Papers 2011.60, Fondazione Eni Enrico Mattei.
    2. Alireza Naghavi & Chiara Strozzi, "undated". "Intellectual Property Rights and Diaspora Knowledge Networks," Development Working Papers 380, Centro Studi Luca d'Agliano, University of Milano.
    3. Koichiro Sano & Yasunobu Tomoda, 2019. "Persistent income gaps in an occupational choice model with multi‐goods," Australian Economic Papers, Wiley Blackwell, vol. 58(1), pages 1-20, March.
    4. Colin R. Davis, 2009. "Interregional Knowledge Spillovers And Occupational Choice In A Model Of Free Trade And Endogenous Growth," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 855-876, December.
    5. Anupam B. Jena & Stéphane Mechoulan & Tomas J. Philipson, 2010. "Altruism and Innovation in Health Care," Journal of Law and Economics, University of Chicago Press, vol. 53(3), pages 497-518.
    6. Sercan Ozcan & Nazrul Islam, 2017. "Patent information retrieval: approaching a method and analysing nanotechnology patent collaborations," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 941-970, May.
    7. Sano, Koichiro & Tomoda, Yasunobu, 2010. "Optimal public education policy in a two sector model," Economic Modelling, Elsevier, vol. 27(5), pages 991-995, September.

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    More about this item

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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