A Numerical Study on Assessing Sustainable Development with Future Genuine Savings Simulation

This paper presents a numerical examination of sustainability from the perspective of "Genuine Savings," using a data set provided by the World Bank. Unlike previously-used criteria of sustainability that focuses on observed paths of genuine savings rates, we consider future sustainability by simulating future paths of genuine savings. This analysis shows that some countries that had been classified as being sustainable by previous studies, using observed paths, are, in fact, not sustainable from the perspective of future sustainability. We provide information on capital components which should be targeted by policymakers in order to maintain future sustainability.

The effects of non-assertion of patents provisions: R&D incentives in vertical relationships

Using a simple downstream duopoly model with vertical relations and downstream R&D, we investigate the effect of non-assertion of patents (NAP) provisions. A monopoly upstream firm decides whether to employ NAP provisions. If it does so, it freely incorporates the R&D outcomes into its inputs. Incorporation improves the efficiency of the downstream firms' production. We have interpreted the introduction of NAP provisions as a source of technology spillover. Using the technologies of two downstream firms is optimal for the upstream firm if and only if the degree of technology spillover is small. In addition, if the ex ante cost difference between the downstream firms is significant, such technology spillovers erode both the profit of the efficient downstream firm and social welfare. We interpret our result in the context of an actual antitrust case related to this model.