TY - JOUR
T1 - Campaign contributions and innovation in a fully-endogenous quality-ladder model
AU - Ikeshita, Kenichiro
N1 - Funding Information:
I thank the Editor-in-Chief Yoshiro Higano, anonymous reviewers, and audiences at several seminars for their helpful comments. In addition, this work was supported by JSPS KAKENHI Grant Number 25380290.
Publisher Copyright:
© 2018, The Japan Section of the Regional Science Association International.
PY - 2018/4
Y1 - 2018/4
N2 - This paper examines the effect of campaign contributions on patent policy, welfare, and innovation using a fully-endogenous quality-ladder model. Assuming two types of households, where one type holds patents and the other does not, we analyze political conflicts between the two groups. Our analysis shows campaign contributions increase the rate of innovation to an excessive level from the viewpoint of social welfare when the innovation-maximizing patent policy is sufficiently strong. This result is important because it implies that the rate of innovation distorted by campaign contributions can be too high from the viewpoint of social welfare.
AB - This paper examines the effect of campaign contributions on patent policy, welfare, and innovation using a fully-endogenous quality-ladder model. Assuming two types of households, where one type holds patents and the other does not, we analyze political conflicts between the two groups. Our analysis shows campaign contributions increase the rate of innovation to an excessive level from the viewpoint of social welfare when the innovation-maximizing patent policy is sufficiently strong. This result is important because it implies that the rate of innovation distorted by campaign contributions can be too high from the viewpoint of social welfare.
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U2 - 10.1007/s41685-018-0080-6
DO - 10.1007/s41685-018-0080-6
M3 - Article
AN - SCOPUS:85100688960
SN - 2509-7954
VL - 2
SP - 139
EP - 157
JO - Asia-Pacific Journal of Regional Science
JF - Asia-Pacific Journal of Regional Science
IS - 1
ER -
