2016 Fiscal Year Final Research Report
An analysis of the effect of ambiguity about innovation on economic growth and productivity
| Project/Area Number |
25380230
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Multi-year Fund |
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| Section | 一般 |
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| Research Field |
Economic theory
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| Research Institution | Okayama University |
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Principal Investigator |
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| Project Period (FY) |
2013-04-01 – 2017-03-31
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| Keywords | 曖昧さ / 経済成長 / 生産性 |
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| Outline of Final Research Achievements |
I construct an endogenous growth model, where the probability of succeeding in innovation is ambiguous and assumed to be contained in an interval. In this model, a firm that succeeds in innovation conducts investment in improving its productivity. Before succeeding in innovation, a firm evaluates the lifetime profit by the lowest possible probability. After succeeding in innovation, however, a firm evaluates the lifetime profit by the highest probability. This property implies that if the innovation probability becomes more ambiguous, less innovation is conducted and the productivity becomes lower. An endogenous growth model with a single innovation probability has a difficulty in explaining this feature.
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| Free Research Field |
理論経済学
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