Endogenous Growth and Poverty Traps in a Cournotian Model
AbstractWe analyse 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 both a steady-state and a balanced growth path exist, and the possibility of multiple equilibrium paths (for given initial conditions) arises. It is argued that the latter feature matches several empirical observations.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1052.
Date of creation: Nov 1994
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Other versions of this item:
- Jordi GALI & Fabrizio ZILIBOTTI, 1995. "Endogenous Growth and Poverty Traps in a Cournotian Model," Annales d'Economie et de Statistique, ENSAE, issue 37-38, pages 197-213.
- Jordi GalÃ & 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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