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R&D, imperfect competition and growth with human capital accumulation

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  • Alberto Bucci

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Abstract

This paper studies the long-run consequences of imperfect competition on growth and the sectoral distribution of skills within an R&D-based growth model with human capital accumulation. We find that steady-state growth is driven only by incentives to accumulate skills. In the model imperfect competition has a positive growth effect, while influencing the allocation of human capital to the different economic activities employing this factor input. Contrary to general wisdom, the share of resources invested in R&D turns out not to be monotonically increasing in the product market power and its correlation with the equilibrium output growth rate is not unambiguous.

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File URL: http://wp.demm.unimi.it/tl_files/wp/2003/DEMM-2003_011wp.pdf
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Bibliographic Info

Paper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2003-11.

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Date of creation: 01 Jan 2003
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Handle: RePEc:mil:wpdepa:2003-11

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Keywords: Endogenous Growth; Human Capital; R&D;

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References

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Citations

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Cited by:
  1. Massimo Florio & Silvia Vignetti, 2003. "Cost-benefit analysis of Infrastructure Projects in an Enlarged European Union: an Incentive-Oriented Approach," Development Working Papers 181, Centro Studi Luca d\'Agliano, University of Milano.
  2. Daria Onori, 2011. "Welfare, Competition, Specialization and Growth," Working Papers halshs-00580722, HAL.
  3. Simon Wiederhold, 2009. "Government Spending Composition in a Simple Model of Schumpeterian Growth," Jena Economic Research Papers 2009-101, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Marcello SPANO', 2003. "Stock market expectations, effects on prices and aggregate income," Departmental Working Papers 2003-25, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  5. Bianco, Dominique, 2008. "Growth and Competition in a Model of Human Capital Accumulation and Research," MPRA Paper 10913, University Library of Munich, Germany.
  6. Giovanna Nicolini & Anna Lo Presti, 2003. "Combined estimators for complex sampling," Departmental Working Papers 2003-12, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  7. Bianco, Dominique, 2007. "R&D, Competition and Growth with Human Capital Accumulation : A Comment," MPRA Paper 5243, University Library of Munich, Germany.

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