On capital increasing returns and long run growth in a model of overlapping generation

Jean-Pierre Drugeon
Additional contact information
Jean-Pierre Drugeon: C.N.R.S. - M.AD.

No 1997022, Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: This contribution illustrates the role of an imperfectly competitive process of capital accumulation in the growth process. It emphasizes the central role of investment in long run outcomes. Whereas the final good sector is characterized by perfect competition, temporary monopolies take place in the capital good ones. These monopolies rest on an increasing returns property in the production technology that in turn results from dynamic intrasectoral externalities. The model is characterized by a sustained long-run growth path at a constant rate. This solution departs from the ones that have emerged in the recent literature because the growth rate of the capital stock and the growth rate of knowledge are not identical.

JEL-codes: O41 (search for similar items in EconPapers)
Pages: 10
Date: 1997-06-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://sites.uclouvain.be/econ/DP/REL/1997022.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvre:1997022

Access Statistics for this paper

More papers in Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Sebastien SCHILLINGS ().