This paper examines the implications of an environmental policy for growth performances. We develop a model where growth is driven by human capital accumulation. Firms invest in research to develop new technologies to reduce their pollution emissions and education is treated as product which not only enhances the productivity of individuals but also enters in their preferences. We find that a tighter environmental policy can promote growth. The reason is that a higher tax on pollution drives the prices of goods whose production is polluting up. This, in turn, enhances the willingness of individuals to acquire education.
A radical evolution of intellectual property law and practices has followed the rise in importance of new technology industries. Many patents today directly protect knowledge. We endeavour to account for this evolution in a simple R&D-based growth model. To deal with the non-convexity property of technologies in which knowledge is an input and fund research privately, we construct a dynamic general equilibrium with Cournot competition and free entry where knowledge is exchanged on competitive micro-markets that can be subject to imperfect exclusion. JEL Classification: O31, O34.
This paper analyzes how the decisions of individuals to have children and acquire skills affect long-term growth. We investigate a model in which technical progress, human capital, and population arise endogenously. In such an economy, the presence of distortions (such as monopolistic competition, knowledge spillover, and duplication effects) leads the decentralized longrun growth to be either insufficient or excessive. We show that this result depends on the relative contribution of population and human capital in the determination of long-term growth, i.e., on how the distortions affect the tradeoff between the quantity of offsprings and the quality of the family members.
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