Suchergebnisse

Purpose
The purpose of this paper is to use a variety-expanding growth model embedded in the North–South framework to study the implementation of globally desirable protection of intellectual property rights (IPRs) in the emerging South.


Design/methodology/approach
The authors use a variety-expanding growth model with innovation-led economic growth in both North and South. As usual, imitations targeted equally at Northern and Southern innovations only occur in the South, and the authors focus on the design of Southern IPR protection.


Findings
Welfare-maximizing degrees of Southern IPR protection are explicitly derived for both North and South. There tends to exist a North–South conflict on the right degree of protection. To resolve this conflict, the Southern government can grant appropriate subsides to support domestic innovators. The authors derive the right rate of innovation subsidies such that the conflict is resolved.


Originality/value
This paper represents the first attempt to deal with the North–South conflict on the degree of Southern IPR protection within the variety-expanding growth model. And the novel perspective is to relax the North–South tension on IPR protection via additionally implementing an appropriate innovation subsidy policy.

Purpose
The purpose of this paper is to study whether it is a rational choice for a tax authority to impose an exit tax on capitalists.


Design/methodology/approach
The tax authority chooses a lump-sum exit tax to maximize a weighted objective of expected tax revenue and expected tax horizon. The tax revene consists of capital income taxes and exit taxes. Capitalists are motivated by sustainable capital accumulation and hence maximize the terminal capital stock.


Findings
The author finds that the objective function of the tax authority is strictly increasing in the exit tax, which holds for extensions with sales tax, labor income tax or proportional exit tax, and hence equilibrium exit tax is equal to an exogenous upper bound.


Originality/value
To the author's knowledge, no existing literature investigates this issue theoretically, and hence the current paper represents the first attempt. The author hopes this theoretical analysis can trigger related empirical studies.

AbstractIn an endogenous growth model, we characterize the fiscal policy driven by a minimum‐time objective of economic development. We find that in equilibrium government should levy the highest possible consumption taxes, reduce public expenditures to the lowest possible level, and keep labor income tax rate and capital income tax rate satisfy a substitution relationship at the balanced budget constraint. We also identify the condition under which income tax rate should be set to zero. We further find that the equilibrium fiscal policy is equivalent to the growth‐maximizing fiscal policy, whereas it generally deviates from the welfare‐maximizing fiscal policy. We hence identify a circumstance where setting the policy goal of reaching an economic‐performance target as soon as possible cannot be justified in the sense of maximizing the welfare of households.

Purpose
– The purpose of this paper is to study the problem of optimal Ramsey taxation in a finite-planning-horizon, representative-agent endogenous growth model including government expenditures as a productive input in capital formation and also with hidden actions.


Design/methodology/approach
– Technically, Malliavin calculus and forward integrals are naturally introduced into the macroeconomic theory when economic agents are faced with different information structures arising from a non-Markovian environment.


Findings
– The major result shows that the well-known Judd-Chamley Theorem holds almost surely if the depreciation rate is strictly positive, otherwise Judd-Chamley Theorem only holds for a knife-edge case or on a Lebesgue measure-zero set when the physical capital is completely sustainable.


Originality/value
– The author believes that the approach developed as well as the major result established is new and relevant.

AbstractIn the paper, a Golden Formula, which does not depend on the specification of production and preference functions, is established to reveal that time‐average of the growth rate of optimal capital accumulation will converge to a constant, which is endogenously determined by relevant parameters, almost surely. The Golden Formula naturally implies surprisingly interesting and also intrinsic economic relations between some important macroeconomic variables; for example, it serves as a direct bridge between the modified Golden Rule and the modified Ramsey Rule. Furthermore, it indeed subsumes and hence substantially extends the classical Golden Rule in deterministic theory.