Schumpeterian Growth without Scale Effects
We incorporate population growth into the model of trustified capitalism, with vertical and horizontal product differentiation, developed by Thompson and Waldo (1994) and generate endogenous long-run Schumpeterian growth without scale effects. Our model extends the analysis of Young (1998) and overturns some key policy and welfare implications of his model. The transitional dynamics of the model can account for the presence of scale effects in preindustrial and early industrial eras. Copyright 1998 by Kluwer Academic Publishers
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Volume (Year): 3 (1998)
Issue (Month): 4 (December)
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