Johann Brunner, Josef Zweimüller,
"Innovation and Growth with Rich and Poor Consumers"
, Nummer 1855, 4-1998, CEPR Discussion Paper, April 1998.
Original Titel:
Innovation and Growth with Rich and Poor Consumers
Sprache des Titels:
Englisch
Original Kurzfassung:
This paper studies the impact of income inequality on the level of innovative activities in a model where innovations result in quality improvements. The market for quality goods is characterised by a natural oligopoly with two types of consumers - rich and poor. In general, we find that for reasons of strategic price setting a more equal distribution of income is favourable for innovation incentives. This is consistent with empirical evidence suggesting that countries with a more equal distribution of income have grown faster.
Sprache der Kurzfassung:
Englisch
Englischer Titel:
Innovation and Growth with Rich and Poor Consumers
Englische Kurzfassung:
This paper studies the impact of income inequality on the level of innovative activities in a model where innovations result in quality improvements. The market for quality goods is characterised by a natural oligopoly with two types of consumers - rich and poor. In general, we find that for reasons of strategic price setting a more equal distribution of income is favourable for innovation incentives. This is consistent with empirical evidence suggesting that countries with a more equal distribution of income have grown faster.
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