INNOVATION AND GROWTH WITH FINANCIAL, AND OTHER, FRICTIONS

• 成果类型: Article
• 署名作者: Chiu, Jonathan; Meh, Cesaire; Wright, Randall
• 署名单位: Bank of Canada; Victoria University Wellington; University of Wisconsin System; University of Wisconsin Madison; Federal Reserve System - USA; Federal Reserve Bank - Chicago; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis; National Bureau of Economic Research
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12210
• 发表日期: 2017
• 页码: 95-125
• 关键词: UNITED-STATES; internal migration; economic-geography; education; mobility; cities; unemployment; equilibrium; decisions; returns

摘要

The generation of ideas and their implementation are crucial for economic performance. We study this in a model of endogenous growth, where productivity increases with innovation and where the exchange of ideas (technology transfer) allows those with comparative advantage to implement them. Search, bargaining, and commitment frictions impede the idea market, however, reducing efficiency and growth. We characterize optimal policies involving subsidies to innovative and entrepreneurial activity, given both knowledge and search externalities. The role of liquidity is discussed. We show intermediation helps by financing more transactions with fewer assets and, more subtly, by ameliorating holdup problems. We also discuss some evidence.