Bianco, Dominique (2009): Competition and Growth in an Endogenous Growth Model with Expanding product Variety without Scale Effects Revisited.
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This paper shows that the results of Bianco (2006) depend critically on the assumption that there are no difference between the intermediate goods share in final output, the returns of specialization and the degree of market power of monopolistic competitors. In this paper, we disentangle the market power parameter from the intermediate goods share in final output and the returns to specialization. The main result of this paper is the death of the inverted-U shape relationship between competition and growth. Indeed, we find a decreasing relationship between competition and growth which is due to the composition of two negative effects on growth : resource allocation and Schumpeterian effects.
|Item Type:||MPRA Paper|
|Original Title:||Competition and Growth in an Endogenous Growth Model with Expanding product Variety without Scale Effects Revisited|
|Keywords:||Endogenous growth, Horizontal differentiation, Technological change, Imperfect competition.|
|Subjects:||O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
|Depositing User:||Dominique Bianco|
|Date Deposited:||10. Aug 2009 08:04|
|Last Modified:||16. Feb 2013 06:55|
Bianco, D. (2006): “Competition and Growth in an Endogenous Growth Model with Expanding Product Variety without Scale Effects," Brussels Economic Review/Cahiers Economiques de Bruxelles, 49(3), 73-84.
Bianco, D. (2007): “An inverted-U Relationship between Product Market Competition and Growth in an Extended Romerian Model," Rivista di Politica Economica, (September-October), 177-190.
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