Bianco, Dominique (2007): R&D, Competition and Growth with Human Capital Accumulation : A Comment.
Download (166Kb) | Preview
This paper shows that the results of Bucci (2003) depend criti- cally 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 that the competition has no effect on growth contrary to Bucci (2003). This result is explained by the fact that economic growth rate depends on the parameters describing preference and the human capital accumulation technology but is completely independent of competition and R&D activity.
|Item Type:||MPRA Paper|
|Institution:||CRP Henri Tudor, University of Nice-Sophia-Antipolis, GREDEG (CNRS)|
|Original Title:||R&D, Competition and Growth with Human Capital Accumulation : A Comment|
|Keywords:||Endogenous growth; Horizontal di®erentiation; Technologi- cal change; Imperfect competition|
|Subjects:||D - Microeconomics > D4 - Market Structure and Pricing > D43 - Oligopoly and Other Forms of Market Imperfection
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J26 - Retirement; Retirement Policies
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
|Depositing User:||Dominique Bianco|
|Date Deposited:||10. Oct 2007|
|Last Modified:||18. Feb 2013 05:40|
Aghion, P., N. Bloom, R. Blundell, R. Griffith, and P. Howitt (2005) : "Competition and Innovation : An Inverted-U Relationship," Quarterly Journal of Economics, 120(2), 701-28. Aghion, P., and R. Griffith (2005) : Competition and Growth : Recon- ciling Theory and Evidence. MIT Press, Cambridge and London. Aghion, P., and P. Howitt (2005) : "Growth with Quality-Improving In- novations : An Integrated Framework," in Handbook of Economic Growth, vol. 1, pp. 67-110. Elsevier Science, Amsterdam, North Holland. Benassy, J.-P. (1996) : "Taste for Variety and Optimum Production Pat- terns in Monopolistic Competition," Economics Letters, 52, 41-47. (1998) : "Is There Always Too Little Research in Endogenous Growth with Expanding Product Variety ?," European Economic Review, 42, 6--69. Bianco, D. (2007) : "An inverted-U Relationship between Product Market Competition and Growth in an Extended Romerian Model : A Comment," MPRA Paper 4492, University Library of Munich, Germany, available at http ://ideas.repec.org/p/pra/mprapa/4492.html. Bucci, A. (2003) : "R&D, Imperfect Competition and Growth with Human Capital Accumulation," Scottish Journal of Political Economy, 50(4), 417- 439. (2005a) : "Inverted-U Relationship between Product Market Com- petition and Growth in an Extended Romerian Model," Rivista di Politica Economica, 95, 177-205. (2005b) : "Monopoly Power in Human Capital based Growth," Acta Oeconomia, 55(2), 121-50. (2005c) : "Product Market Competition, R&D Effort and Eco- nomic Growth," UNIMI - Research Papers in Economics, Business, and Statistics 1011, Università degli Studi di Milano, available at http ://ideas.repec.org/p/bep/unimip/1011.html. Bucci, A., and C. Parello (2006) : "Horizontal Innovation-Based Growth and Product Market Competition," UNIMI – Research Papers in Economics 1032, Università degli Studi di Milano. de Groot, H. L., and R. Nahuis (1998) : "Taste for Diversity and the Optimality of Economic Growth," Economics Letters, 58, 293-95. Dixit, A. K., and J. E. Stiglitz (1977) : "Monopolistic Competition and Optimum Product Diversity," American Economic Review, 67(3), 297-308. Grossman, G. M., and E. Helpman (1991) : Innovation and growth in the global economy. MIT Press, Cambridge, Mass. and London. Lucas, R. J. (1988) : "On the Mechanics of Economic Development," Jour- nal of Monetary Economics, 22(1), 3-42. Romer, P. M. (1990) : "Endogenous Technological Change," Journal of Political Economy, 98(5), S71-102.