Competition and Performance: The Different Roles of Capital and Labor

Thijs ten Raa and Pierre Mohnen

Chapter 20 in Input–Output Economics: Theory and Applications:Featuring Asian Economies, 2009, pp 371-388 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractNeoclassical economists argue that competition promotes efficiency, but Schumpeter argues that it is monopoly rents that help entrepreneurs to invest in R&D. We investigate the overall effect of competition on TFP-growth. We use rent, defined as the factor reward above its perfectly competitive value, as a negative measure of competition. Our main finding is that performance is positively associated with rents on capital, but not with rents on labor. Neoclassical economists and Schumpeter may both be right, but the mechanisms differ.

Keywords: Input–Output Analysis; National Accounts; Productivity; Performance; Canadian Economy; Chinese Economy; Indian Economy; Asian Economics (search for similar items in EconPapers)
Date: 2009
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Related works:
Journal Article: Competition and performance: The different roles of capital and labor (2008)
Working Paper: Competition and Performance: The Different Roles of Capital and Labor (2003)
Working Paper: Competition and Performance: The Different Roles of Capital and Labor (2003)
Working Paper: Competition and Performance: The Different Roles of Capital and Labor (2003)
Working Paper: Competition and Performance: The Different Roles of Capital and Labor (2003)
Working Paper: Competition and Performance: The Different Roles of Capital and Labor (2003)
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