Competiton And Growth In An Endogenous Growth Model With Expanding Product Variety Without Scale Effects Revisited
This paper shows that the results of Bianco (2006) depend critically on the assumption that there are no difference between the intermediate goods share in final output, the returns of specialization and the degree of market power of monopolistic competitors. In this paper, we disentangle the market power parameter from the intermediate goods share in final output and the returns to specialization. The main result of this paper is the death of the inverted-U shape relationship between competition and growth. Indeed, we find a decreasing relationship between competition and growth which is due to the composition of two negative effects on growth : resource allocation and Schumpeterian effects.
Volume (Year): 4 (2009)
Issue (Month): 4(10)_Winter2009 ()
|Contact details of provider:|| Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=14|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dominique Bianco, 2007.
"An Inverted U-Relationship between Product Market Competition and Growth in an Extended Romerian Model: A Comment,"
Rivista di Politica Economica,
SIPI Spa, vol. 97(5), pages 245-258, September.
- Bianco, Dominique, 2007. "An inverted-U relationship between product market competition and Growth in an extended romerian model : A comment," MPRA Paper 4492, University Library of Munich, Germany.
- Dominique BIANCO, 2009.
"Competiton And Growth In An Endogenous Growth Model With Expanding Product Variety Without Scale Effects Revisited,"
Journal of Applied Economic Sciences,
Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(4(10)_Win), pages 502-508.
- Bianco, Dominique, 2009. "Competition and Growth in an Endogenous Growth Model with Expanding product Variety without Scale Effects Revisited," MPRA Paper 16670, University Library of Munich, Germany.
- Elias Dinopoulos & Peter Thompson, 1999. "Scale effects in Schumpeterian models of economic growth," Journal of Evolutionary Economics, Springer, vol. 9(2), pages 157-185.
- Dominique Bianco, 2006. "Competition and growth in endogenous growth model with expanding product variety without scale effects," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 49(3), pages 191-202.
- Gancia, Gino & Zilibotti, Fabrizio, 2005.
"Horizontal Innovation in the Theory of Growth and Development,"
Handbook of Economic Growth,in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170
- Gino Gancia & Fabrizio Zilibotti, 2005. "Horizontal Innovation in the Theory of Growth and Development," Working Papers 200, Barcelona Graduate School of Economics.
- Gino Gancia & Fabrizio Zilibotti, 2005. "Horizontal innovation in the theory of growth and development," Economics Working Papers 831, Department of Economics and Business, Universitat Pompeu Fabra.
- Bianco, Dominique, 2007. "Competition and Growth in an Endogenous Growth Model with Expanding Product Variety without Scale Effects," MPRA Paper 6179, University Library of Munich, Germany, revised 08 Dec 2007.
When requesting a correction, please mention this item's handle: RePEc:ush:jaessh:v:4:y:2009:i:4(10)_winter2009:p:82. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Stefanescu)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.