Article ID Journal Published Year Pages File Type
10226398 Communications in Nonlinear Science and Numerical Simulation 2019 21 Pages PDF
Abstract
We extend the continuous time Tsur and Zemel's (2007) endogenous recombinant growth model with both physical capital and knowledge accumulation to allow for a basic IPRs system driven by public intervention as in Marchese et al. (2018). We analyze the effect of different policy regimes on social welfare comparing the outcomes in a decentralized and centralized frameworks. This requires to carefully study the transition dynamics associated to different values of the policy parameter. To this aim, we present a computational approach, extending the method developed by Privileggi (2011, 2015), to provide a novel procedure capable of approximating the transition dynamic paths and performing Skiba-point analysis even in our complex framework. Our numerical analysis shows that stricter policy regimes generate higher welfare levels and that a strictly positive tax level may be needed to avoid stagnation.
Related Topics
Physical Sciences and Engineering Engineering Mechanical Engineering
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