Monopoly and Long-Run Capital Accumulation
Abstract
This 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 Info
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Bibliographic Info
Article provided by The RAND Corporation in its journal Bell Journal of Economics.
Volume (Year): 13 (1982)
Issue (Month): 1 (Spring)
Pages: 143-157
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Web page: http://www.rje.org
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Web: http://gemini.econ.umd.edu/cgi-bin/rje_online.cgi
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Pascal Belan & Philippe Michel & Bertrand Wigniolle, 2005.
"Does imperfect competition foster capital accumulation in a developing economy ?,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
halshs-00193985, HAL.
- 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).
- Pascal Belan & Philippe Michel & Bertrand Wigniolle, 2005. "Does imperfect competition foster capital accumulation in a developing economy ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00268842, HAL.
- Chu, Angus C., 2009.
"Effects of Patent Length on R&D: A Quantitative DGE Analysis,"
MPRA Paper
16918, University Library of Munich, Germany.
- Angus Chu, 2010. "Effects of patent length on R&D: a quantitative DGE analysis," Journal of Economics, Springer, vol. 99(2), pages 117-140, March.
- Angus C. Chu, 2009. "Effects of Patent Length on R&D: A Quantitative DGE Analysis," IEAS Working Paper : academic research 09-A001, Institute of Economics, Academia Sinica, Taipei, Taiwan, revised Dec 2009.
- Chu, Angus C., 2007. "Economic Growth and Patent Policy: Quantifying the Effects of Patent Length on R&D and Consumption," MPRA Paper 5476, University Library of Munich, Germany.
- Edward C. Prescott & Stephen L. Parente, 1999.
"Monopoly Rights: A Barrier to Riches,"
American Economic Review,
American Economic Association, vol. 89(5), pages 1216-1233, December.
- Stephen L. Parente & Edward C. Prescott, 1997. "Monopoly rights: a barrier to riches," Staff Report 236, Federal Reserve Bank of Minneapolis.
- Chu, Angus C., 2009.
"Macroeconomic Effects of Intellectual Property Rights: A Survey,"
MPRA Paper
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.
- repec:hal:journl:halshs-00193985 is not listed on IDEAS
- repec:hal:journl:halshs-00268847 is not listed on IDEAS
- Eaton, Jonathan, 1989.
"Monopoly Wealth and International Debt,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(1), pages 33-48, February.
- Jonathan Eaton, 1989. "Monopoly Wealth and International Debt," NBER Working Papers 2485, National Bureau of Economic Research, Inc.
- repec:hal:journl:halshs-00268842 is not listed on IDEAS
- Angus Chu, 2009. "Effects of blocking patents on R&D: a quantitative DGE analysis," Journal of Economic Growth, Springer, vol. 14(1), pages 55-78, March.
- 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.
- Chu, Angus C., 2007. "Optimal Patent Breadth: Quantifying the Effects of Increasing Patent Breadth," MPRA Paper 3910, University Library of Munich, Germany.
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