Communication costs, network externalities, and long-run growth

This note examines the effect of per-period communication costs in a model of expanding product variety. It is shown that while a decrease in communication costs leads to growth in aggregate output, this growth is only transitional with the growth rate falling to zero in the long run as the result of a congestion effect.

MoreLess

Year of publication:	2007-02-13
Authors:	Davis, Colin
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 15.2007, 5, p. 1-9
Publisher:	AccessEcon

More details

Extent:	application/pdf
Type of publication:	Article
Classification:	O3 - Technological Change; Research and Development ; O4 - Economic Growth and Aggregate Productivity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010629292