Nicole’s research interests are in microeconomic theory, in particular network theory. Her most recent research focuses on the role of social networks in the diffusion of information.
For more details on her research, current research ideas and papers, please visit her personal webpage.
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© 2015 Elsevier B.V.We present a model in which patent citations occur as new ideas are produced from combinations of existing ideas. An idea's usability in this process is represented as an interval in a variety space of ideas, whose length determines the likelihood of citation. This process endogenously derives exponential aging of patents, which is consistent with empirical observations. The endogeneity of aging sets our process apart from the standard preferential attachment literature.
Despite the evidence on incomplete financial markets and substantial risk being borne by innovators, current models of growth through creative destruction predominantly model innovators’ as risk neutral. Risk aversion is expected to reduce the incentive to innovate and we might fear that without insurance innovation completely disappears in the long run. The present paper introduces risk averse agents into an occupational choice model of endogenous growth in which insurance against failure to innovate is not available. We derive a clear negative relationship between the level of risk aversion and long run growth. Surprisingly, we show that in an equilibrium there exists a cut-off value of risk aversion below which the growth rate of the mass of innovators tends to a strictly positive constant. In this case, innovation persists on the long run and consumption per capita grows at a strictly positive rate. On the other hand, for levels of risk aversion above the cut-off value, the economy eventually stagnates.
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Page Created: Tuesday 16 August 2011 16:31:24 by il0001
Last Modified: Wednesday 31 January 2018 17:07:27 by il0001
Expiry Date: Friday 16 November 2012 16:28:23
Assembly date: Thu Feb 22 00:17:01 GMT 2018
Content ID: 62117