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A Schumpeterian Model of Wage Inequality and Intellectual Property Rights Enforcement

Author

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  • Carmelo Pierpaolo Parello

    (Catholic University of Louvain
    Università di Viterbo "La Tuscia")

  • Luca Spinesi

    (Catholic University of Louvain
    Università di Roma "La Sapienza")

Abstract

This paper addresses the concern of whether the determinants of patent infringement and declaratory judgement suits may affect both long-term economic performance and wage inequality. In doing so, we construct a quality-ladder R&D-based endogenous growth model, in which the institutional setting for patent protection directly impacts the long-run private incentive to conduct R&D as well as to invest in human capital. We find that both the institutional setting and the Court's behaviour exacerbate wage inequality, while the steady-state effects on R&D effort and long-run growth are mixed.

Suggested Citation

  • Carmelo Pierpaolo Parello & Luca Spinesi, 2005. "A Schumpeterian Model of Wage Inequality and Intellectual Property Rights Enforcement," Rivista di Politica Economica, SIPI Spa, vol. 95(5), pages 151-176, September.
    • Handle: RePEc:rpo:ripoec:v:95:y:2005:i:5:p:151-176
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    Cited by:

    1. Bhattacharya, Sourav & Chakraborty, Pavel & Chatterjee, Chirantan, 2022. "Intellectual property regimes and wage inequality," Journal of Development Economics, Elsevier, vol. 154(C).
    2. Ya-Fang Wang, 2022. "Audit Fees, Patent Litigation, and Long-Term Performance," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 15(1), pages 7-15, July.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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