Towards a Dynamic (Schumpeterian) Welfare Economics
University of Groningen School of Economics and Business
26 2004 4,
ERIM Report Series Reference No. ERS-2004-026-ORG
For an economy where knowledge plays an increasingly important role in shaping its dynamics, economics needs a dynamic (Schumpeterian) welfare theory. This paper sketches the role of knowledge in an economy and argues that a static Paretian welfare economics is inadequate, or at least needs to be supplemented. As suggested by the work of Schumpeter, a dynamic welfare economics acknowledges the role of knowledge. In a dynamic welfare economics, I suggest, different costs of communication are central, indicating that knowledge may not be readily diffused or exchanged. Recent developments in Intellectual Property Right (IPR) law are evaluated to determine the extent to which they affect communication costs and thus future economic welfare.
Number of Pages in PDF File: 30
Keywords: knowledge economy, welfare theory, IPR, communication, communication costs
JEL Classification: M, M10, L2, D6working papers series
Date posted: October 12, 2004
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