PRODUCT DIVERSITY, ENDOGENOUS MARKUPS, AND DEVELOPMENT TRAPS

• 成果类型: Article
• 署名作者: GALI, J
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(95)01209-8
• 发表日期: 1995
• 页码: 39-63
• 关键词: Multiple equilibria; growth models; Endogenous markups; CONVERGENCE

摘要

We analyze the implications of endogenous markups for the dynamics of capital accumulation, in an environment in which the degree of competition increases with economic development. In equilibrium markups are inversely related to the aggregate capital stock, which makes it possible for the marginal revenue product of capital to be nonmonotonic, even if the marginal product of capital is strictly diminishing. That feature raises the possibility of multiple steady states and, most interestingly, multiple equilibrium paths (converging to different steady states) for given initial conditions. We conclude by discussing some of the predictions of our model and assessing their empirical relevance.