Innovation Dynamics and Fiscal Policy: Implications for Growth, Asset Prices, and Welfare
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Datum
2017-04-13
Autor
Donadelli, Michael
Grüning, Patrick
SAFE No.
171
Metadata
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Zusammenfassung
"We study the general equilibrium implications of different fiscal policies on macroeconomic quantities, asset prices, and welfare by utilizing two endogenous growth models. The expanding variety model features only homogeneous innovations by entrants. The Schumpeterian growth model features heterogeneous innovations: ""incremental"" innovations by incumbents and ""radical"" innovations by entrants. The government levies taxes on labor income and corporate profits and supplies subsidies to consumption, capital investment, and investments in research and development by entrants and, if applicable, incumbents. With these models at hand, we provide new insights on the interplay of innovation dynamics and fiscal policy."
Forschungsbereich
Financial Markets
Schlagworte
endogenous growth, asset pricing, government, fiscal policy, heterogeneous innovation
JEL-Klassifizierung
E22, G12, H20, I30, O30
Thema
Fiscal Stability
Monetary Policy
Macro Finance
Monetary Policy
Macro Finance
Beziehungen
1
Publikationstyp
Working Paper
Link zur Publikation
Collections
- LIF-SAFE Working Papers [334]