TY  - UNPD
A1  - Curatola, Giuliano Antonio
A1  - Donadelli, Michael
A1  - Grüning, Patrick
T1  - Technology trade with asymmetric tax regimes and heterogeneous labor markets: implications for macro quantities and asset prices
T2  - SAFE working paper series ; No. 163
N2  - The international diffusion of technology plays a key role in stimulating global growth and explaining co-movements of international equity returns. Existing empirical evidence suggests that countries are heterogeneous in their attitude toward innovation: Some countries rely more on technology adoption while other countries rely more on internal technology production. European countries that rely more on adoption are also typically characterized by lower fiscal policy exibility and higher labor market rigidity. We develop a two-country model – where both countries rely on R&D and adoption – to study the short-run and long-run effects of aggregate technology and adoption probability shocks on economic growth in the presence of the aforementioned asymmetries. Our framework suggests that an increase in the ability to adopt technology from abroad stimulates economic growth in the country that benefits from higher adoption rates but the beneficial effects also spread to the foreign country. Moreover, it helps explaining the differences in macro quantities and equity returns observed in the international data.
T3  - SAFE working paper - 163 
KW  - Technology Adoption
KW  - R&D Investment
KW  - Asymmetric Tax Regimes
KW  - Asset Prices
Y1  - 2017
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/42723
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-427234
UR  - https://ssrn.com/abstract=2896712
IS  - This version: January 9, 2017
PB  - SAFE
CY  - Frankfurt am Main
ER  -