时    间：2022年9月27日（周二）15:00-16:30

地    点：史带楼 503室

题    目：Strategic Investment in Technology and the Dynamics of Public Good Provision

主讲人：Liuchun Deng  assistant professor

主持人：姚志勇 教授

Abstract: This paper presents a conception of public good provision and technology investment in which two parties stochastically alternate in power, and place differential weights on the public good, this difference taken as an index of political polarization, leading to pro- and anti-public good (PPG and APG) parties. In each period, the incumbent party allocates a budget between a private good, a public good, and investment in technology that lowers the cost of the public good provision in the future. The paper demonstrates that, for a sufficiently high budget, an MPE exists for high depreciation or low discounting. In this MPE, for relatively low polarization, higher power fluctuations lead to more investment in technology by both parties and the equilibrium policies are invariant to the degree of reversibility of technology investment. A rise in polarization can sometimes trigger a discrete increase in the expected level of technology stock, with its effects generally being non-monotonic. Further, if the budget is sufficiently small, we show that the equilibrium outcome coincides with the social planner's solution.

Short bio: Liuchun Deng is an assistant professor of economics at Yale-NUS College. His research focuses on the labor market and productivity consequences of automation and international trade. He also works on the theory of economic dynamics with applications to trade and development. Liuchun Deng holds a Ph.D. in Economics from Johns Hopkins University.