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Are All Technological Improvements Beneficial? Absolutely Not

Author

Listed:
  • Yochanan Shachmurove

    (Department of Economicss and Business, The City College and Graduate Center of the City University of New York)

  • Uriel Spiegel

    (Department of Management, Bar Ilan University and Department of Economics, University of Pennsylvania)

Abstract

This paper shows, using a simple model, that wasteful innovations may result in a loss-loss situation where no country experiences an increase in welfare. If some countries introduce innovations that result in harmful effects on other countries, it may cause the adversely affected countries to retaliate by imposing impediments to international trade. In a globalized and integrated World economy, such policies can only harm the countries involved. Thus, it is in both countries' best interest to encourage sustainable coordination between policies in order to better their own citizens, as well as the World's aggregate welfare.

Suggested Citation

  • Yochanan Shachmurove & Uriel Spiegel, 2013. "Are All Technological Improvements Beneficial? Absolutely Not," PIER Working Paper Archive 13-027, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    • Handle: RePEc:pen:papers:13-027
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    International Trade; Samuelson; Gainers and Losers from Trade; Technological Improvements; Concealed Technological Improvements; Pareto Improvements in Production and Consumption; Nash Bargaining Process; Sleeping Patents; Rest of the World; Terms of Trade; Distributive Justice; China; United States.;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • F1 - International Economics - - Trade
    • O - Economic Development, Innovation, Technological Change, and Growth
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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