IDEAS home Printed from https://ideas.repec.org/a/jec/journl/v9y2013i1p55-76.html
   My bibliography  Save this article

Monopolistic Competition, Efficient Bargaining and Endogenous Growth

Author

Listed:
  • Shu-Hua Chang

    (Department of Public Finance & Taxation, National Taichung University of Science and Technology, Taiwan)

Abstract

This paper sets up an endogenous growth model with monopolistic competition in the product market and efficient bargaining in the labor market, and uses it to examine the impacts of union power, monopoly power and tax policy on the long-run economic growth rate. Some main findings emerge from the analysis. First, when the capital income tax rate exceeds the labor income tax rate, a rise in union power will always increase the economic growth rate. Secondly, how monopoly power affects the economic growth rate depends on the strength of union power and the tax structure. Third, either a higher capital or a higher labor income tax rate has a detrimental effect on the balanced growth rate.

Suggested Citation

  • Shu-Hua Chang, 2013. "Monopolistic Competition, Efficient Bargaining and Endogenous Growth," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 9(1), pages 55-76, January.
    • Handle: RePEc:jec:journl:v:9:y:2013:i:1:p:55-76
    as

    Download full text from publisher

    File URL: http://www.jem.org.tw/content/pdf/Vol.9No.1/04.pdf
    Download Restriction: no
    File URL: http://www.jem.org.tw/content/abstract/Vol.9No.1/English/04.htm
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    monopolistic competition; efficient bargaining; endogenous growth;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jec:journl:v:9:y:2013:i:1:p:55-76. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yi-Ju Su (email available below). General contact details of provider: https://edirc.repec.org/data/cbfcutw.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.