GROWTH AND COMPETITION IN A MODEL OF HUMAN CAPITAL ACCUMULATION AND RESEARCH
GROWTH AND COMPETITION IN A MODEL OF HUMAN CAPITAL ACCUMULATION AND RESEARCH
Author(s): Domenique Bianco Subject(s): Economy
Published by: Reprograph
Keywords: endogenous growth; horizontal differentiation; technological change; imperfect competition; human capital
Summary/Abstract: The aim of this paper is to analyze the relationship between competition and growth in a model of human capital accumulation and research by disentangling the monopolistic mark-up in the intermediate goods sector and the returns to specialization in order to have a better measure of competition. We find that the steady-state output growth rate depends on the parameters describing preferences, human capital accumulation technology and R&D activity. We also show that the relationship between competition and growth is inverse U shaped. This result that seems to be in line these empirical results (Aghion and Griffith, (2005)) is explained by the resource allocation effect.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: IV/2009
- Issue No: 09
- Page Range: 341-348
- Page Count: 8
- Language: English
