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題名 Inflation, R&D and growth in an open economy
作者 Chu, Angus C.;Cozzi, Guido;Lai, Ching-Chong;Liao, Chih-Hsing
賴景昌
貢獻者 經濟系
關鍵詞 Inflation;Economic growth;R&D;Trade in intermediate goods
日期 2015-07
上傳時間 3-Sep-2015 16:59:26 (UTC+8)
摘要 This study explores the long-run effects of inflation in a two-country Schumpeterian growth model with cash-in-advance constraints on consumption and R&D investment. We find that increasing domestic inflation reduces domestic R&D investment and the growth rate of domestic technology. Given that economic growth in a country depends on both domestic and foreign technologies, increasing foreign inflation also affects the domestic economy. When each government conducts its monetary policy unilaterally to maximize the welfare of domestic households, the Nash-equilibrium inflation rates are generally higher than the optimal inflation rates chosen by cooperative governments who maximize the welfare of both domestic and foreign households. Under the CIA constraint on R&D (consumption), a larger market power of firms amplifies (mitigates) this inflationary bias. We use cross-country panel data to estimate the effects of inflation on R&D and also calibrate the two-country model to data in the Euro Area and the US to quantify the welfare effects of decreasing the inflation rates from the Nash equilibrium to the optimal level.
關聯 Journal of International Economics, 96(2), 360-374
資料類型 article
DOI http://dx.doi.org/10.1016/j.jinteco.2015.03.007
dc.contributor 經濟系
dc.creator (作者) Chu, Angus C.;Cozzi, Guido;Lai, Ching-Chong;Liao, Chih-Hsing
dc.creator (作者) 賴景昌zh_TW
dc.date (日期) 2015-07
dc.date.accessioned 3-Sep-2015 16:59:26 (UTC+8)-
dc.date.available 3-Sep-2015 16:59:26 (UTC+8)-
dc.date.issued (上傳時間) 3-Sep-2015 16:59:26 (UTC+8)-
dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/78264-
dc.description.abstract (摘要) This study explores the long-run effects of inflation in a two-country Schumpeterian growth model with cash-in-advance constraints on consumption and R&D investment. We find that increasing domestic inflation reduces domestic R&D investment and the growth rate of domestic technology. Given that economic growth in a country depends on both domestic and foreign technologies, increasing foreign inflation also affects the domestic economy. When each government conducts its monetary policy unilaterally to maximize the welfare of domestic households, the Nash-equilibrium inflation rates are generally higher than the optimal inflation rates chosen by cooperative governments who maximize the welfare of both domestic and foreign households. Under the CIA constraint on R&D (consumption), a larger market power of firms amplifies (mitigates) this inflationary bias. We use cross-country panel data to estimate the effects of inflation on R&D and also calibrate the two-country model to data in the Euro Area and the US to quantify the welfare effects of decreasing the inflation rates from the Nash equilibrium to the optimal level.
dc.format.extent 588273 bytes-
dc.format.mimetype application/pdf-
dc.relation (關聯) Journal of International Economics, 96(2), 360-374
dc.subject (關鍵詞) Inflation;Economic growth;R&D;Trade in intermediate goods
dc.title (題名) Inflation, R&D and growth in an open economy
dc.type (資料類型) articleen
dc.identifier.doi (DOI) 10.1016/j.jinteco.2015.03.007
dc.doi.uri (DOI) http://dx.doi.org/10.1016/j.jinteco.2015.03.007