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Monopolies Life Cycle, Bureaucratization and Schumpeterian Growth

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Author Info

  • Martimort, D.
  • Verdier, T.

Abstract

This paper analyzes the links between the internal organization of firms and macroeconomic growth. We present a Schumpeterian growth model in which firms face dynamic agency costs. These agency costs are due to the formation of vertical collusions within the organization. To respond to the opportunity of internal collusion, firms go through a whole life cycle, getting more bureaucratized and less efficient over time.

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Bibliographic Info

Paper provided by Laval - Laboratoire Econometrie in its series Papers with number 1999-09.

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Length: 34 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:lavale:1999-09

Contact details of provider:
Postal: Chaire d'economie et d'econometrie de l'assurance; DELTA; CREST; PARIS, France.

Related research

Keywords: MONOPOLIES ; LIFE CYCLE ; ECONOMIC GROWTH;

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Cited by:
  1. Acemoglu, D. & Aghion, P. & Zilibotti, F., 2003. "Vertical integration and distance to frontier," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
  2. Knobel, A., 2009. "Vertical Integration and Economic Growth: An Empirical Study," Journal of the New Economic Association, New Economic Association, issue 3-4, pages 54-70.

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