Artikel

The Effect of Regulations in an Endogenous growth model with Research and Development

We utilize a relatively standard endogenous growth model with intermediaries and research and development (R&D). We augment the setup with government regulations to study the effect of regulations on aggregate allocations. The novelty is that we endogeneize the problem of the regulator, so the number of regulations is determined within the model. Next, we solve the model and derive some comparative static results. The qualitative results confirm that more regulation leads to a lower number intermediaries, but each of those is now larger. Investment in physical capital is higher, but that comes at the expense of lower investment in R&D, lower consumption, lower output, and lower welfare. Overall, the intuition that regulation is bad for the economy is confirmed.

Language: Englisch

Bibliographic citation: Journal: Theoretical and Practical Research in Economic Fields ; ISSN: 2068-7710 ; Volume: XIII ; Year: 2022 ; Issue: 1 (forthcoming) ; Craiova: ASERS Publishing

Classification: Wirtschaft

Subject: Endogenous growth model
R&D

Event: Geistige Schöpfung

(who): Vasilev, Aleksandar

Event: Veröffentlichung

(who): ASERS Publishing
ZBW – Leibniz Information Centre for Economics

(where): Craiova

(when): 2022

Handle: http://hdl.handle.net/10419/251943

Last update: 10.03.2025, 11:42 AM CET

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Object type

Artikel

Associated

Vasilev, Aleksandar
ASERS Publishing
ZBW – Leibniz Information Centre for Economics

Time of origin

2022

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The Effect of Regulations in an Endogenous growth model with Research and Development

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Other Objects (12)

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