Bianco, Dominique (2007): An inverted-U relationship between product market competition and Growth in an extended romerian model : A comment.
Download (174kB) | Preview
This paper shows that the results of Bucci (2005) 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|
|Institution:||University of Nice-Sophia-Antipolis, GREDEG(CNRS)|
|Original Title:||An inverted-U relationship between product market competition and Growth in an extended romerian model : A comment|
|Keywords:||Endogenous growth; Horizontal differentiation; Technological change; Imperfect competition|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
|Depositing User:||Dominique Bianco|
|Date Deposited:||17. Aug 2007|
|Last Modified:||03. Mar 2013 07:04|
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. Benassy, J.-P. (1998): "Is There Always Too Little Research in Endogenous Growth with Expanding Product Variety?," European Economic Review, 42, 61-69. Bucci, A. (2005): "Inverted-U Relationship between Product Market Com- petition and Growth in an Extended Romerian Model," Rivista di Politica Economica, 95, 177-205. Bucci, A., and C. Parello (2006): "Horizontal Innovation-Based Growth and Product Market Competition," Working Paper 1032, Universita 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. Gancia, G., and F. Zilibotti (2005): "Horizontal Innovation in the The- ory of Growth and Development," in Handbook of Economic Growth, vol. 1, pp. 111-70. Elsevier Science, Amsterdam, North Holland. Grossman, G. M., and E. Helpman (1991): Innovation and growth in the global economy. MIT Press, Cambridge, Mass. and London. Romer, P. M. (1990): "Endogenous Technological Change," Journal of Political Economy, 98(5), S71-102.
Available Versions of this Item
- An inverted-U relationship between product market competition and Growth in an extended romerian model : A comment. (deposited 17. Aug 2007) [Currently Displayed]