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Patent Protection and Public Capital Accumulation

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  • Ken Tabata

    (School of Economics, Kwansei Gakuin University)

Abstract

This paper examines the balanced-growth maximizing public investment policy in a growth model where the engines of economic growth are private R&D and public capital accumulation. The government allocates tax revenue between new investment and maintenance expenditure for public capital. We consider how the balanced-growth maximizing public investment policy changes as patent protection becomes stronger, as seen in many countries. The results show that as patent protection becomes stronger, the income tax rate to finance public investment should be lower and the expenditure share of new investment should be higher. The balanced-growth maximizing policy leads to a smaller government, as patent protection becomes stronger.

Suggested Citation

  • Ken Tabata, 2019. "Patent Protection and Public Capital Accumulation," Discussion Paper Series 192, School of Economics, Kwansei Gakuin University.
    • Handle: RePEc:kgu:wpaper:192
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    File URL: http://192.218.163.163/RePEc/pdf/kgdp192.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Patent Protection; Public Capital; Economic Growth; Welfare;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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