Endogenous Growth and Poverty Traps in a Cournotian Model
AbstractWe analyze the implications for the dynamics of capital accumulation of market power and endogenous demand elasticities, in an environment in which the latter are affected by the number of competitors in each industry. In equilibrium the interest rate increases as capital accumulates, even though the marginal product of capital is constant. Under standard assumptions two steady states and a balanced growth path exist, and the possibility of multiple equilibrium paths (for given initial conditions) arises. The latter feature is argued to match several empirical observations.
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Bibliographic InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (1995)
Issue (Month): 37-38 ()
Other versions of this item:
- Galí, Jordi & Zilibotti, Fabrizio, 1994. "Endogenous Growth and Poverty Traps in a Cournotian Model," CEPR Discussion Papers 1052, C.E.P.R. Discussion Papers.
- Jordi Galí & Fabrizio Zilibotti, 1993. "Endogenous growth and poverty traps in a Cournotian model," Economics Working Papers 65, Department of Economics and Business, Universitat Pompeu Fabra.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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