Endogenous technical change in a competitive economy

• 成果类型: Article
• 署名作者: Hellwig, M; Irmen, A
• 署名单位: University of Mannheim
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1006/jeth.2000.2787
• 发表日期: 2001
• 页码: 1-39
• 关键词: Endogenous technical change; Perfect competition; productivity growth; wages; EMPLOYMENT

摘要

We develop a model of endogenous growth in an economy with competitive markets. Technical change arises from the intentional actions of entrepreneurs looking for profits. Opportunities for such profits stem from inframarginal rents. This provides a counterexample to the widespread view that endogenous technical change is possible only if innovating firms can expect to reap monopoly or oligopoly rents. The model has a unique equilibrium which involves steady growth at a positive rate. Equilibrium growth is inefficiently low because knowledge spillover effects are neglected, The inefficiency can be eliminated by an interest rate subsidy. (C) 2001 Academic Press.