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Emergence of New Industries and Endogenous Growth Cycles

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  • Horii, R.

Abstract

This paper constructs a growth model in which monopolistically competing firms choose the characteristic of their own product from an unbounded product space. While consumers wish to satisfy various needs by purchasing a diverse range of goods, production costs are lower for those goods that are more similar to existing ones because of spillover effects in the lesrning-by-doing process.

Suggested Citation

  • Horii, R., 2000. "Emergence of New Industries and Endogenous Growth Cycles," ISER Discussion Paper 0510, Institute of Social and Economic Research, The University of Osaka.
    • Handle: RePEc:dpr:wpaper:0510
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    File URL: https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2000/dp0510.pdf
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    References listed on IDEAS

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