The Department of Economics cordially invites you to the Economic Research Seminar (Department Seminar) on Wednesday, October 19^th, with

Francesco Venturini (University of Perugia) on "Returns to Innovation and Income Inequality: A Centenary Perspective"

Abstract: This paper investigates the role of research productivity in explaining the evolution of income inequality in the last one hundred years. We develop a Schumpeterian growth model featuring an endogenous income distribution, which predicts that innovation impacts income inequality with two counteracting forces, a positive one associated with the increase in asset returns and a negative one related to the dissipation of innovation rents due to creative destruction. Using historical data for 21 OECD countries over the period 1920-2019, we estimate the long-run relationship between research productivity and income inequality and simulate the dynamic response of inequality to an institutional shock that facilitated international patenting and, hence, promoted the exploitation of innovation rents by firms. Our estimates reveal a strong, positive association between research productivity and income inequality, with the asset returns channel being the dominant mechanism of transmission.

Date: Wednesday, October 19^th

Time: 4.30 to 6 pm (CET)

Location: building D4, ground floor, room D4.0.133