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patent (03)<br />An official document conferring exclusive privileges on an invention for a period of years. Patents create a formidable technological barrier to entry, establishing and maintaining MONOPOLY POWER. Si nce patents allow monopoly profits to accrue to their inventors, they are a major private incentive to research and development. Nonpatent-holders can onl y use patented technical knowledge by licence. Although the patent system may encourage inventors, it has been criticized on the grounds that all scientific knowledge should be a free good and that the considerable legal costs of registering and protecting a patent exclude the poor inventor from using the system.<br /><em>See also:</em> invention; product cycle
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export subsidy (F1, H2)<br />A reduction in the cost of exports brought about by a government grant. There can be reductions in the costs of labour, of capital or of export financing, as well as more favourable tax treatment. SMITH referred to such subsidies as 'bounties'.
difficulties for the financing of public expenditure. Many other economies have experienced this phenomenon, e.g. Jamaica with its bauxite industry, Venezuela with its petroleum industry.<br /><em>Reference</em><br />Corden, W.M. and Neary, L.P. (1982) 'Booming sector and de-industrialization in a small open economy', Economic Journal92: 825-48.<br /> Wijnbergen, S. van (1984) 'The Dutch disease: a disease after all?', Economic Journal94: 41-55.
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international comparisons of the cost of living (D6, FO)<br />The cost of purchasing the same representative bundle of goods and services in different countries of the world. Regular surveys are carried out to ascertain the
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