Growth and welfare effects of stabilizing innovation cycles
| Autor: | Marta Aloi, Laurence Lasselle |
|---|---|
| Rok vydání: | 2007 |
| Předmět: |
Macroeconomics
Economics and Econometrics Steady state (electronics) jel:E62 Growth endogenous cycles stabilization innovation subsidy welfare media_common.quotation_subject Sustained growth Subsidy Monetary economics jel:H32 jel:O41 Capital accumulation Economics Beneficial effects Welfare media_common |
| Zdroj: | Journal of Macroeconomics. 29:806-823 |
| ISSN: | 0164-0704 |
| DOI: | 10.1016/j.jmacro.2006.05.001 |
| Popis: | We consider a simple model of innovation where equilibrium cycles may arise and show that, whenever actual capital accumulation falls below its balanced growth path, subsidizing innovators by taxing consumers has stabilizing effects, promotes sustained growth and increases welfare. Further, if the steady state is unstable under laissez faire, the introduction of the subsidy can make the steady state stable. Such a policy has beneficial effects as it fosters output growth along the transitional adjustment path, and increases the welfare of current and future generations. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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