Innovation, Reallocation, and Growth

Acemoğlu, Daron; Akcigit, Ufuk; Alp, Harun; Bloom, Nicholas; Kerr, William R.

doi:10.2139/ssrn.3079898

Cited by 23 publications

(27 citation statements)

References 55 publications

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“…The …rst moment M1 is the employment share of entrants that is computed from the Census Bureau data over 1982-2005. The second moment M2 is the aggregate growth rate of the innovating sector in the US economy that is also calculated from Census Bureau data by Acemoglu et al (2011 We next report the equilibrium values of some of the endogenous variables. The …rst two rows provide shares of GDP, with labor income and capital income shares being 67.4% and 29.5%, respectively.…”

Section: Calibrationmentioning

confidence: 99%

Taxation, Corruption, and Growth

Aghion¹,

Akcigit²,

Cagé³

et al. 2016

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We build an endogenous growth model to analyze the relationships between taxation, corruption, and economic growth. Entrepreneurs lie at the center of the model and face disincentive e¤ects from taxation but acquire positive bene…ts from public infrastructure. Political corruption governs the e¢ ciency with which tax revenues are translated into infrastructure. The model predicts an inverted-U relationship between taxation and growth, with corruption reducing the optimal taxation level. We …nd evidence consistent with these predictions and the entrepreneurial channel using data from the Longitudinal Business Database of the US Census Bureau. The marginal e¤ect of taxation for growth for a state at the 10th or 25th percentile of corruption is signi…cantly positive; on the other hand, the marginal e¤ects of taxation for growth for a state at the 90th percentile of corruption are much lower across the board. We make progress towards causality through Grangerstyle tests and by considering periphery counties where e¤ective tax policy is largely driven by bordering states. Finally, we calibrate our model and …nd that the calibrated taxation rate of 37% is fairly close to the model's estimated welfare maximizing taxation rate of 42%. Reducing corruption provides the largest potential impact for welfare gain through its impact on the uses of tax revenues.

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Section: Calibrationmentioning

confidence: 99%

Taxation, Corruption, and Growth

Aghion¹,

Akcigit²,

Cagé³

et al. 2016

Self Cite

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“…In estimating a general equilibrium model of …rm-level innovation and employment dynamics, we follow Lentz and Mortensen (2008), Akcigit and Kerr (2010), and Acemoglu et al (2013). We di¤er from existing work in this area in three important respects, however.…”

Section: Introductionmentioning

confidence: 99%

Transition to Clean Technology

Acemoğlu¹,

Akcigit²,

Hanley³

et al. 2016

Journal of Political Economy

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665

130

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We develop a microeconomic model of endogenous growth where clean and dirty technologies compete in production and innovation-in the sense that research can be directed to either clean or dirty technologies. If dirty technologies are more advanced to start with, the potential transition to clean technology can be di¢ cult both because clean research must climb several rungs to catch up with dirty technology and because this gap discourages research e¤ort directed towards clean technologies. Carbon taxes and research subsidies may nonetheless encourage production and innovation in clean technologies, though the transition will typically be slow. We characterize certain general properties of the transition path from dirty to clean technology. We then estimate the model using a combination of regression analysis on the relationship between R&D and patents, and simulated method of moments using microdata on employment, production, R&D, …rm growth, entry and exit from the US energy sector. The model's quantitative implications match a range of moments not targeted in the estimation quite well. We then characterize the optimal policy path implied by the model and our estimates. Optimal policy makes heavy use of research subsidies as well as carbon taxes. We use the model to evaluate the welfare consequences of a range of alternative policies. JEL Classi…cation: O30, O31, O33, C65.

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“…When the incentive to get a competitive edge over others is missing because competitive pressures are low, firms do not consider innovation a priority. Moreover, where competition does not drive less efficient firms out of the market to free their resources, much of the public support for research and development may be absorbed in prices and wages rather than in the quantity of R&D (Acemoglu et al, 2013). Therefore, progress to strengthen domestic and foreign competition, as discussed above, would likely lead to more innovation.…”

Section: Boosting Innovationmentioning

confidence: 99%

Structural reforms to boost growth and living standards in Argentina

Pandiella

2018

OECD Economics Department Working Papers

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Innovation, Reallocation, and Growth

Cited by 23 publications

References 55 publications

Taxation, Corruption, and Growth

Taxation, Corruption, and Growth

Transition to Clean Technology

Structural reforms to boost growth and living standards in Argentina

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