Money and the Welfare Cost of Inflation in an R&D Growth Model
研究了通货膨胀对研发驱动型增长的影响，发现当消费与真实货币余额的替代弹性小于1时，通胀会降低研发和产出增长率；美国实现价格稳定的福利收益至少相当于年消费的0.5%。
This study analyzes the effects of inflation on R&D and innovation‐driven growth. In the theoretical section, we incorporate money demand into a quality‐ladder model with elastic labor supply and derive the following result. If the elasticity of substitution between consumption and the real money balance is less (greater) than unity, then R&D and the growth rate of output would be decreasing (increasing) in the growth rate of money supply. Quantitatively, decreasing inflation in the U.S. to achieve price stability improves social welfare, and the welfare gain is equivalent to at least 0.5% of annual consumption. In the empirical section, we use cross‐country data to establish a negative and statistically significant relationship between inflation and R&D.