Stimulating Long-Term Growth and Welfare in the U.S.

Arbeitspapier

We develop an endogenous growth model to quantify how permanent structural policy changes that enhance the fiscal policy mix, markets' functioning, and public institutions' quality affect long-term growth and welfare. The reforms include increased public investment, reduced market power through lower price markups for patents and intermediate goods, and an improved institutional framework that reduces rent-seeking. All reforms, except lower patent prices, lead to per-capita output and welfare gains along the transition and balanced growth paths. In contrast, a lower markup in the research sector hurts innovation, leading to lower growth over both paths and welfare losses along the transition.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 10658

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policies and Behavior of Economic Agents: General ; One, Two, and Multisector Growth Models ; Institutions and Growth
• Subject: endogenous growth ; structural policy ; welfare

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Malley, James ; Philippopoulos, Apostolis ; Malley, Jim
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/282346
• Last update: 10.03.2025, 11:46 AM CET