A New Exploration of Optimal IPR Protection and International Policy Cooperation

In this paper, a variety-expanding growth model has been constructed in the classical North-South framework. Optimal degree of IPR protection has been explicitly computed both for the North and the South in the sense of welfare maximizing, in the short run and non-short run of the economies. Endogenous innovation growth rate and the policy of innovation subsidy for the Southern government have been introduced into our model. The relationship between IPR protection and long-term growth rate has also been thoroughly investigated. Finally, the issue about international policy cooperation has been explored and we show that it is possible that an optimal degree of Southern IPR protection would also be globally efficient in some comparatively weak conditions

What Effect does the Size of the State-Owned Sector Have on Regional Growth in China?

This abstract will be reformatted upon submission. You don't need to format for line-breaks here!!!!! This paper tests the contributions of the size of state-owned enterprises as a determinant of China’s economic growth. The methodology is discussed in papers by Levine and Renelt (1992) and Sala-i-Martin (1997). We estimate regressions with growth of output and total factor productivity as the dependent variable and a variety of other factors, including measures of the size of the state-run sector, as regressors. We find that controlling for a variety of other factors, the greater the importance of state owned enterprises, as measured by the proportion of total industrial production they produce, the lower the provincial growth rate. The average estimate is that a decrease in the SOE share of industrial production by ten percentage points increases real GDP growth the following year by 1.14%. The average impacts of a reduction in the SOE share in employment are smaller in absolute magnitude and different for large provinces than they are for small ones. Large provinces actually have higher growth rates if this share rises, while smaller provinces have higher growth rates when it falls.growth regressions, China, State-Owned Enterprises

A new stationary game equilibrium induced by stochastic group evolution and rational Individual choice

In the present paper, a new approach to equilibrium selection for very general normal form games has been constructed by introducing stochastic optimal stopping theory into classical evolutionary game theory. That is, the new game equilibrium is induced by both stochastic group evolution and decentralized rational individual choice. Moreover, stability of the game equilibrium is confirmed from both time and space dimensions

Stochastic evolutionary cartel formation

This paper employs the evolutionary dynamics driven by the Moran process (a special birth-death process) to investigate endogenous cartel formation from the perspective of stochastic evolution of the underlying industry. A Prisoner’s Dilemma game is derived based on the Cournot competition between any two firms. Moreover, in a repeated setting, we consider the normal-form game between two well-known behavior modes: cooperative strategy tit-for-tat (TFT) and non- cooperative strategy always defect (ALLD). We then give the corresponding conditions under which full collusion and partial collusion are established, respectively, in stochastic evolutionary sense. Finally, both the threshold of discount factor and the threshold of industry concentration are endogenously determined in the model

A turnpike theorem involving a modified Golden Rule

In the current study, we investigate efficient capital accumulation in a stochastic neoclassical aggregate growth model. The underlying uncertainty is driven by Brownian-motion shocks and the major results do not rely on the specification of production functions. The stochastic balanced path of the capitallabor ratio is naturally derived by a martingale, and the corresponding modified Golden Rule path of capital accumulation is well-defined. The powerful martingale theory is thus employed, and a stochastic turnpike theorem involving the modified Golden Rule is proved. That is, the underlying path of capital accumulation is asymptotically efficient in the sense of consumption maximization. We focus on asymptotic turnpike theorems and our turnpike theorem only relies on the requirement that the modified Golden-Rule path of capital accumulation is reachable in any almost surely finite Markov time. Finally, it is asserted that the modified Golden-Rule path of capital accumulation indeed provides us with a robust turnpike under very weak assumptions

Measuring Knowledge Spillovers: A Non-appropriable Returns Perspective

A new approach is developed to measure knowledge spillovers by means of proportion of non-appropriable returns to social returns, assuming no specific forms of production and knowledge functions. It is complicated theoretically, but very simple and practical empirically. Using PWT 6.3, we find that: 1. the measure of spillovers is nonlinear to income; 2. spillovers do not exist when income is low, but do exist in higher income groups; 3. the elasticity of knowledge is nonlinear to income; 4. spillovers exist even when the elasticity of output to capital is roughly close to direct measure of capital's share.Knowledge spillovers, Measure, Non-appropriable returns, Capital's share, Dynamic OLS