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their effects on innovation, several merger proposals have been challenged due to their adverse innovation effects. In a … desirability of merger may depend on the effectiveness of the patent system and the cost of innovation. …
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may not be the equilibrium outcome in the presence of licensing. Depending on the cost of innovation, licensing may either …
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We present results from quantitative exercises using the Lucas and Romer endogenous growth models, from which we calculate welfare losses from the distortions presented in the Romer model. Moreover, comparing the models to data, we show that an economy governed by the Romer model would attain a...
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