|M.Sc Student||Zislis Marat|
|Subject||Economic Implications of Intellectual and Capital|
Property Rights Policies
|Department||Department of Industrial Engineering and Management||Supervisor||Professor Dan Peled|
Firms’ incentives to invest in capital accumulation and R&D are affected by the tax/transfer and intellectual property rights (IPR) protection regimes under which they operate, which in turn are set by the government. Evaluating such policies requires an analytical framework within which the equilibrium effects of the policies on individual firm behavior and economic aggregates can be computed.
At any moment each firm pays a tax or receives a transfer, in capital and know-how, as a simple fraction of its distance from the relevant average stock of all firms in the economy. Firms choose optimally their investments, taking as given the tax/transfer regime and the trajectory of average stocks in the economy. In equilibrium these perceived trajectories must correspond to the optimally chosen investments they generate. The equilibrium is found numerically for a wide range of environmental and policy parameters and various performance measures are computed. The common growth rate in a stationary equilibrium is affected by the tax/transfer rates of the government policy.
The main results are: