Competition and performance: The different roles of capital and labor
AbstractNeoclassical economists argue that competition promotes efficiency, but Schumpeter argues that it is monopoly rents that help entrepreneurs to invest in R&D. We investigate the overall effect of competition on total factor productivity growth (TFP) growth. We use rent, defined as the factor reward above its perfectly competitive value, as a negative measure of competition. Our main finding is that performance is positively associated with rents on capital but not with rents on labor. Neoclassical economists and Schumpeter may both be right, but the mechanisms differ.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 65 (2008)
Issue (Month): 3-4 (March)
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Web page: http://www.elsevier.com/locate/jebo
Other versions of this item:
- Pierre Mohnen & Thijs Ten Raa, 2003. "Competition and Performance: The Different Roles of Capital and Labor," CIRANO Working Papers 2003s-66, CIRANO.
- Mohnen, P. & Raa, T. ten, 2003. "Competition and Performance: The Different Roles of Capital and Labor," Discussion Paper 2003-112, Tilburg University, Center for Economic Research.
- Thijs ten Raa & Pierre Mohnen, 2003. "Competition and Performance: The Different Roles of Capital and Labor," ERSA conference papers ersa03p10, European Regional Science Association.
- Mohnen,Pierre & Raa,Thijs,ten, 2003. "Competition and Performance: The Different Roles of Capital and Labor," Research Memoranda 034, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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