Inequality of opportunity, inequality of effort, and innovation
| dc.contributor.author | SPIGANTI, Alessandro | |
| dc.date.accessioned | 2020-03-04T15:11:23Z | |
| dc.date.available | 2020-03-04T15:11:23Z | |
| dc.date.issued | 2020 | |
| dc.description.abstract | Is inequality good or bad for innovation? I study an endogenous growth model with heterogeneous agents; due to credit frictions, inequalities in wealth lead to misallocation of talent. A more unequal reward scheme incentivises innovation in any given period, but it leads to a more unequal distribution of opportunities that may exacerbate the misallocation of talent in the next period. Empirically, I show that the flow of patents in a US state is negatively correlated with inequality of opportunity, but positively with inequality of effort; and that the elimination of state death taxes, as a proxy for an increase in the financial incentives towards risky activities, had a positive short-term but a negative longterm effect on the growth rate of patents. | en |
| dc.format.mimetype | application/pdf | en |
| dc.identifier.issn | 1830-7728 | |
| dc.identifier.uri | https://hdl.handle.net/1814/66407 | |
| dc.language.iso | en | en |
| dc.orcid.upload | true | * |
| dc.publisher | European University Institute | en |
| dc.relation.ispartofseries | EUI MWP | en |
| dc.relation.ispartofseries | 2020/02 | en |
| dc.rights | info:eu-repo/semantics/openAccess | en |
| dc.rights.license | Attribution 4.0 International | * |
| dc.rights.uri | http://creativecommons.org/licenses/by/4.0/ | * |
| dc.subject | Occupational choices | en |
| dc.subject | Adverse selection | en |
| dc.subject | Bequests | en |
| dc.subject | Theil's Index | en |
| dc.subject | Death taxes | en |
| dc.subject | D15 | en |
| dc.subject | D53 | en |
| dc.subject | D58 | en |
| dc.subject | D82 | en |
| dc.subject | H23 | en |
| dc.subject | O31 | en |
| dc.title | Inequality of opportunity, inequality of effort, and innovation | en |
| dc.type | Working Paper | en |
| dspace.entity.type | Publication | |
| person.identifier.orcid | 0000-0003-3621-6893 | |
| person.identifier.other | 43529 | |
| relation.isAuthorOfPublication | da080481-8a6e-4826-a983-806e2322db27 | |
| relation.isAuthorOfPublication.latestForDiscovery | da080481-8a6e-4826-a983-806e2322db27 |
