Public Factors and Democracy in Poverty Analysis
            
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Ziesemer, Thomas

doi:10.1093/oxfordjournals.oep.a041940

Cited by 17 publications

(11 citation statements)

References 10 publications

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“…Second, this paper is in line with the literature on public education, infrastructure, and inequality . With a few exceptions (e.g., Ziesemer, ), this literature pays scant attention to public R&D investment . Third, our work complements the literature on innovation and inequality (Aghion, Akcigit, Bergeaud, Blundell, & Hémous, ; Chu, ; Cozzi & Impullitti, ) with the following important differences.…”

Section: Introductionmentioning

confidence: 88%

“…Similar to Ziesemer (), private knowledge production includes productive government investment. In the spirits of Smulders and van de Klundert (), each intermediate goods firm invests in an in‐house R&D to produce the know‐how using the following knowledge production function:

h_{i t + 1} = ζ_{i t + 1} h_{i t}^{θ} s_{i t}^{ν} g_{i t}^{λ} .

The government intervenes in the R&D process by investing in public R&D input (

g_{i t}

) that is used to complement the private sector, but with a redistributive intent.…”

Section: The Modelmentioning

confidence: 99%

“…Note that in the special case,

ω goodbreakinfix= ν goodbreakinfix= 0

, Equation reduces to Ziesemer (). The parameters

θ

and

λ

are ex ante knowledge elasticities, whereas

θ goodbreakinfix+ ω λ

and

λ goodbreakinfix- ω λ

capture ex post intergenerational linkages associated with firm level knowledge production.…”

Section: The Modelmentioning

confidence: 99%

“…With respect to

τ

, the optimal tax (the tax that maximizes welfare) is derived from :

\partial W ∕ \partial τ = 0 \Rightarrow τ^{*} = ρ λ ∕ (1 + ρ (ν + λ - 1)),

which is independent of

ω

. It bears emphasizing here that no distributional conflict arises in the choice of the tax rate

τ

, which is similar to Glomm and Ravikumar () but in contrast to Ziesemer ().…”

Section: Optimal Redistributive Policiesmentioning

confidence: 99%

“…Ziesemer () studies the distributional conflict that arises from government involvement in knowledge creation. In his models, ability differences among individuals lead to differences in their preferred tax rates.…”

mentioning

confidence: 99%

See 4 more Smart Citations

Redistributive innovation policy, inequality, and efficiency

Basu

Getachew

2019

J Public Economic Theory

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We examine the efficiency and distributional effects of regressive and progressive public R&D policies that target high-tech and low-tech sectors using a heterogenous-agent growth model with in-house R&D and incomplete capital markets. We find that such policies have important implications for efficiency and inequality. A regressive public R&D investment financed by income tax could boost growth and welfare via a positive effect on individual savings and effort. It could, however, also lower growth and welfare via its effect on the efficiency-inequality trade-off. Thus, the relationship between public R&D spending and welfare is hump-shaped, admitting an optimal degree of regressivity in public R&D spending. Using our baseline model, and the US state-level GDP data, we derive the degree of regressiveness of public R&D investment in US states. We find that US states are more regressive in their R&D investment than the optimal regressiveness implied by our growth model.

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Section: Introductionmentioning

confidence: 88%