[LINK] Re: OFF TOPIC Re: the rich and corporate parasites
Thu, 27 Feb 2003 12:39:18 +1100
Deus Ex Machina wrote:
> if lowering taxes results in an increase in revenue whats the problem?
But lowering taxes can't _necessarily_ result in an increse in revenue,
because when taxes reach zero so does tax revenue. So there must be
a "maximising" point somewhere, with taxes above zero. And I think
we're clearly below that point currently rather than above it (look
at the modelling done for the tax cuts that accompanied the GST).
This is all irrelevant, however, because maximising state revenue
isn't anyone's overall goal -- maximising GDP and/or other measures
of overall welfare is the holy grail, and the debate is over how and
which things should be done by the state in order to achieve that.
Getting back on topic, a link from Slashdot on patents:
While others simply have assumed, with Romer, that the
prototype of an intellectual product is nonrivalrous,
Boldrin and Levine argue that the tiny cost of replicating it
undermines the conventional model. Production is not subject
to increasing returns, they argue, and competitive markets
can work. "Even a minuscule amount of rivalry," they write,
"can turn standard results upside down."
I haven't read the full paper it describes yet, but it's at
We construct a competitive model of innovation and growth
under constant returns to scale. Previous models of
growth under constant returns cannot model technological
innovation. Current models of endogenous innovation rely on
the interplay between increasing returns and monopolistic
markets. In fact, established wisdom claims monopoly power
to be instrumental for innovation and sees the non-rivalrous
nature of ideas as a natural conduit to increasing returns. The
results here challenge the positive description of previous
models, and the normative conclusion that monopoly through
copyright and patent is socially beneficial.