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); innovation returns are modeled as following an ex ante known probability distribution. By assuming that innovation outcomes are …
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); innovation returns are modeled as following an ex ante known probability distribution. By assuming that innovation outcomes are …
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enables the model to replicate the empirically rather moderate correlation between the R&D innovation probabilities of …
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, incumbents. With these models at hand, we provide new insights on the interplay of innovation dynamics and fiscal policy. …
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This paper studies a two-country production economy with complete and frictionless financial markets and international trade of final goods in which competition in R&D leads to endogenous new firm creation and economic growth. Current monopolists ("incumbents") and potential new firms...
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. The results show that the literature leans towards Schumpeter (1942); innovation returns are modeled as following an ex … ante known probability distribution. By assuming that the outcomes of innovation activities are (probabilistically …
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