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Market imperfections may lead to underinvestment in dynamic general equilibrium models. An interesting but unexplored question is whether policy interventions which attenuate underinvestment gaps necessarily imply that consumption will initially decline. By employing a calibrated version of a...
Persistent link: https://www.econbiz.de/10011065329
This paper proposes a Schumpeterian growth model generalizing the existing theory: we exploit the Salop (1979) formalization of circular product differentiation to take into account the fact that knowledge can diffuse variously among R&D sectors, ranging from local to global diffusion. We...
Persistent link: https://www.econbiz.de/10011187968
This paper analyses the dynamics of a double Cobb–Douglas economy with overlapping generations and public health investments that affect the supply of efficient labour of the old-aged. It is shown that the positive steady state of the economy is unique. Moreover, we provide necessary and...
Persistent link: https://www.econbiz.de/10010576952
income per worker. Moreover, using the notion of A-efficiency introduced by Golosov et al. (2007) in a context of endogenous … conclusions can be drawn: although the financing of health investments reduces both the disposable income and marginal propensity … to consume of young individuals through increased labor income taxation, it also increases the length of life and can …
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