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- W2048717170 abstract "This paper studies optimal household behaviour in a model of creative destruction. The saving technology is characterised by stochastic returns that follow a Poisson process. It is shown that equilibrium conditions with optimising households differ substantially from equilibrium conditions where investment in R&D is determined by firms. Three out of four market failures disappear and a new market failure resulting from a complementarity in financing R&D is identified. Studying the social optimum shows that it contains as the special case of risk neutrality the social optimum derived in the literature." @default.
- W2048717170 created "2016-06-24" @default.
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- W2048717170 date "1999-03-01" @default.
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- W2048717170 title "A Model of Creative Destruction with Undiversifiable Risk and Optimising Households" @default.
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- W2048717170 doi "https://doi.org/10.1111/1468-0297.00423" @default.
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