Competition, innovation and growth with limited commitment
Ramon Marimon and
Vincenzo Quadrini
Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Abstract:
We study how barriers to business start-up affect the investment in knowledge capital when contracts are not enforceable. Barriers to business start-up lower the competition for knowledge capital and, in absence of commitment, reduce the incentive to accumulate knowledge. As a result, countries with large barriers experience lower income and growth. Our results are consistent with cross-country evidence showing that the cost of business start-up is negatively correlated with the level and growth of income.
Keywords: Innovation; Knowledge Capital; Enforcement; Growth; Competition; Commitment; Recursive Contracts; Mobility (search for similar items in EconPapers)
JEL-codes: D23 E22 J24 O30 O31 O40 (search for similar items in EconPapers)
Date: 2005-12
New Economics Papers: this item is included in nep-bec, nep-cse, nep-dge, nep-ent and nep-mac
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Related works:
Working Paper: Competition, Innovation and Growth with Limited Commitment (2006)
Working Paper: Competition, Innovation and Growth with Limited Commitment (2006)
Working Paper: Competition, Innovation and Growth with Limited Commitment (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:933
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