Affiliation:
1. Graduate School of Economics, Osaka University , Toyonaka, 560-0043, Japan
Abstract
Abstract
This article examines analytically the welfare-maximizing patent length in a dynamic general equilibrium model which is based on a variety expansion R&D-based growth model. The results show that if the elasticity of substitution among the intermediate goods is higher, that is, the price elasticity of demand is higher, the welfare-maximizing patent length is shorter. This article also examines the welfare-maximizing mix of patent length and breadth, and numerically obtains similar results, that is, a higher elasticity of substitution shortens the welfare-maximizing length.
Funder
Japan Center for Economic Research
Japan Society for the Promotion of Science
Research Center at the Institute of Social and Economic Research
Kyoto Institute of Economic Research
Publisher
Oxford University Press (OUP)