Innovation dynamics and fiscal policy: implications for growth, asset prices, and welfare
- We study the general equilibrium implications of different fiscal policies on macroeconomic quantities, asset prices, and welfare by utilizing two endogenous growth models. The expanding variety model features only homogeneous innovations by entrants. The Schumpeterian growth model features heterogeneous innovations: "incremental" innovations by incumbents and "radical" innovations by entrants. The government levies taxes on labor income and corporate profits and supplies subsidies to consumption, capital investment, and investments in research and development by entrants and, if applicable, incumbents. With these models at hand, we provide new insights on the interplay of innovation dynamics and fiscal policy.
| Author: | Michael DonadelliORCiDGND, Patrick GrüningGND |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-431627 |
| URL: | https://ssrn.com/abstract=2955089 |
| Parent Title (English): | SAFE working paper series ; No. 171 |
| Series (Serial Number): | SAFE working paper (171) |
| Publisher: | SAFE |
| Place of publication: | Frankfurt am Main |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2017 |
| Year of first Publication: | 2017 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2017/05/16 |
| Tag: | Asset pricing; Endogenous growth; Fiscal policy; Government; Heterogeneous innovation |
| Issue: | This version: April 13, 2017 |
| Page Number: | 66 |
| HeBIS-PPN: | 404247059 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF) | |
| Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
| Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
