Novelty value is one of the legal requirements for a patentable innovation but it has been given relatively little attention in the literature. It is often abstracted away by assuming that any innovation is patentable. We study the optimal novelty requirement in a model where ideas are scarce,...

This paper studies whether and how banks' technological innovations affect the bank lending channel of monetary policy transmission. We first provide a theoretical model in which banks' technological innovation relaxes firms' earning-based borrowing constraints and thereby enlarges the response...