Growth and ideas in a perfectly competitive world - Archive ouverte HAL
Article Dans Une Revue Structural Change and Economic Dynamics Année : 2019

Growth and ideas in a perfectly competitive world

Résumé

Are ideas, increasing returns to scale, and perfect competition compatible? To address this fundamental question, I build a purposefully simple model of growth and ideas with two salient features: (i) firms raise capital from shareholders, and (ii) the production function shows decreasing returns to scale in the stock of ideas and in labor. I obtain two noticeable results from this model. First, contrary to conventional wisdom, I show that ideas, increasing returns to scale, and a competitive equilibrium are tenable. Second, I underline that the model has a balanced growth equilibrium similar to the one founded in the semi-endogenous models.

Dates et versions

hal-02447215 , version 1 (21-01-2020)

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Vincent Boitier. Growth and ideas in a perfectly competitive world. Structural Change and Economic Dynamics, 2019, 53, pp.370-376. ⟨10.1016/j.strueco.2019.06.002⟩. ⟨hal-02447215⟩

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