Creator: Levine, David K. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 388 Abstract:
Previous authors have argued that the optimal monetary policy is contractionary. If buyers value consumption substantially more than sellers, there is some randomness and informational constraints make asset trading useful, we show that there is an incentive compatible expansionary policy that dominates all incentive compatible contractionary policies.
Stichwort: Optimal monetary policy, Contraction, Trade, Private information, Asset trading, and Expansion Fach: D82 - Asymmetric and Private Information; Mechanism Design and E52 - Monetary Policy
Creator: Boldrin, Michele and Levine, David K. Series: Staff report (Federal Reserve Bank of Minneapolis. Research Department) Number: 339 Abstract:
In the modern theory of growth, monopoly plays a crucial role both as a cause and an effect of innovation. Innovative firms, it is argued, would have insufficient incentive to innovate should the prospect of monopoly power not be present. This theme of monopoly runs throughout the theory of growth, international trade, and industrial organization. We argue that monopoly is neither needed for, nor a necessary consequence of, innovation. In particular, intellectual property is not necessary for, and may hurt more than help, innovation and growth. We argue that, as a practical matter, it is more likely to hurt.
Stichwort: Growth, Trade, Capital Accumulation, Intellectual Property, and Innovation Fach: L43 - Legal Monopolies and Regulation or Deregulation, F11 - Neoclassical Models of Trade, O47 - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence, O34 - Intellectual Property and Intellectual Capital, L11 - Production, Pricing, and Market Structure; Size Distribution of Firms, and O31 - Innovation and Invention: Processes and Incentives