Monopoly and Long-Run Capital Accumulation
AbstractThis article constructs a decentralized growth model with two production sectors, one having competitive firms and the other oligopolists. Since capitalized pure profits for the latter sector constitute an asset which household savings must finance, we show that imperfect competition can reduce steady-state national output through both a "static effect" on allocative efficiency and a "dynamic effect" on aggregative capital accumulation. After presenting a theoretical analysis, we generate several numerical examples. The latter suggest that the "dynamic effect" of monopoly may be significantly larger than the "static effect" in practice.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by The RAND Corporation in its journal Bell Journal of Economics.
Volume (Year): 13 (1982)
Issue (Month): 1 (Spring)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Chu, Angus C., 2009.
"Macroeconomic Effects of Intellectual Property Rights: A Survey,"
17342, University Library of Munich, Germany.
- Angus C. Chu, 2009. "Macroeconomic Effects of Intellectual Property Rights: A Survey," IEAS Working Paper : academic research 09-A007, Institute of Economics, Academia Sinica, Taipei, Taiwan.
- Belan, Pascal & Michel, Philippe & Wigniolle, Bertrand, 2005.
"Does imperfect competition foster capital accumulation in a developing economy?,"
Research in Economics,
Elsevier, vol. 59(2), pages 189-208, June.
- Pascal Belan & Philippe Michel & Bertrand Wigniolle, 2005. "Does imperfect competition foster capital accumulation in a developing economy," Cahiers de la Maison des Sciences Economiques v05026, Université Panthéon-Sorbonne (Paris 1).
- Bertrand CRETTEZ, 1999. "Concurrence à la Cournot, accumulation du capital et bulle," Annales d'Economie et de Statistique, ENSAE, issue 53, pages 69-91.
- Pascal Belan & Philippe Michel & Bertrand Wigniolle, 2007.
"Capital Accumulation, Welfare, and the Emergence of Pension-Fund Activism,"
FinanzArchiv: Public Finance Analysis,
Mohr Siebeck, Tübingen, vol. 63(1), pages 54-82, March.
- repec:hal:journl:halshs-00268847 is not listed on IDEAS
- Tse, Chung Yi, 2000. "Monopoly, human capital accumulation and development," Journal of Development Economics, Elsevier, vol. 61(1), pages 137-174, February.
- Jonathan Eaton, 1988.
"Monopoly Wealth and International Debt,"
NBER Working Papers
2485, National Bureau of Economic Research, Inc.
- Bridgman, Benjamin & Gomes, Victor & Teixeira, Arilton, 2011. "Threatening to Increase Productivity: Evidence from Brazil's Oil Industry," World Development, Elsevier, vol. 39(8), pages 1372-1385, August.
- repec:hal:journl:halshs-00268842 is not listed on IDEAS
- Chu, Angus C., 2007. "Optimal Patent Breadth: Quantifying the Effects of Increasing Patent Breadth," MPRA Paper 3910, University Library of Munich, Germany.
- Stephen L. Parente & Edward C. Prescott, 1997.
"Monopoly rights: a barrier to riches,"
236, Federal Reserve Bank of Minneapolis.
- repec:hal:journl:halshs-00193985 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.