Competition, Innovation and Growth with Limited Commitment

We study how barriers to competition - such as, restrictions to business start-up and strict enforcement of covenants or IPR - affect the investment in knowledge capital when contracts are not enforceable. These barriers lower the competition for human capital and reduce the incentive to accumulate knowledge. We show in a dynamic general equilibrium model that this mechanism has the potential to account for significant cross-country income inequality.

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Year of publication:	2006-09
Authors:	Marimon, Ramon ; Quadrini, Vincenzo
Institutions:	C.E.P.R. Discussion Papers
Subject:	contract enforcement \| economic growth \| human capital

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Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 5840
Classification:	L14 - Transactional Relationships; Contracts and Reputation; Networks ; O4 - Economic Growth and Aggregate Productivity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005123709