
doi: 10.21034/wp.688 , 10.3386/w17512 , 10.1111/iere.12210 , 10.2139/ssrn.2583519 , 10.34989/swp-2011-25
handle: 10419/53874
doi: 10.21034/wp.688 , 10.3386/w17512 , 10.1111/iere.12210 , 10.2139/ssrn.2583519 , 10.34989/swp-2011-25
handle: 10419/53874
The generation of ideas and their implementation are crucial for economic performance. We study this in a model of endogenous growth, where productivity increases with innovation and where the exchange of ideas (technology transfer) allows those with comparative advantage to implement them. Search, bargaining, and commitment frictions impede the idea market, however, reducing efficiency and growth. We characterize optimal policies involving subsidies to innovative and entrepreneurial activity, given both knowledge and search externalities. The role of liquidity is discussed. We show intermediation helps by financing more transactions with fewer assets and, more subtly, by ameliorating holdup problems. We also discuss some evidence.
productivity, Production theory, theory of the firm, O3, Economic models, Growth, O4, G2, Innovation, E4, Applications of statistics to economics, Productivity, financial frictions, technology transfer, ddc:330, Search, Intermediation, innovation, endogenous growth, Liquidity, Economic growth models, Potential output, Bargaining, jel: jel:O3, jel: jel:O31, jel: jel:O12, jel: jel:O33, jel: jel:O16
productivity, Production theory, theory of the firm, O3, Economic models, Growth, O4, G2, Innovation, E4, Applications of statistics to economics, Productivity, financial frictions, technology transfer, ddc:330, Search, Intermediation, innovation, endogenous growth, Liquidity, Economic growth models, Potential output, Bargaining, jel: jel:O3, jel: jel:O31, jel: jel:O12, jel: jel:O33, jel: jel:O16
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| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Top 10% | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Top 10% |
