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Structural Change and the Kaldor Facts of Economic Growth

Foellmi, Reto; Zweimüller, Josef - Institut für Volkswirtschaftslehre, …

We present a model in which two of the most important features of the long-run growth process are reconciled: the massive changes in the structure of production and employment; and the Kaldor facts of economic growth. We assume that households expand their consumption along a hierarchy of needs...

Persistent link: https://www.econbiz.de/10005627797

Schumpeterian Entrepreneurs Meet Engel's Law: The Impact of Inequality on Innovation-Driven Growth

Zweimueller, Josef - Institut für Volkswirtschaftslehre, …

This paper analyzes the impact of inequality on growth when technical progress is driven by innovations and consumers have hierarchic preferences. Inequality has an impact on growth because it affects the structure and the dynamics of demand. Redistribution from very rich to very poor consumers...

Persistent link: https://www.econbiz.de/10005627889

Democracy and innovation

Frey, Bruno S. - Institut für Volkswirtschaftslehre, … - 2010

Persistent link: https://www.econbiz.de/10008672225

Competition and innovation: does the distance to the technology frontier matter?

Alder, Simon - Institut für Volkswirtschaftslehre, … - 2010

This paper provides new evidence on the relationship between innovation, competition and distance to the technology … product innovations. Secondly, there is evidence that innovation and competition are more positively correlated at low levels … positively correlated with product innovation when a firm is more advanced than its main competitor. In other cases, this …

Persistent link: https://www.econbiz.de/10008568450

The road not taken: competition and the R&D portfolio

Letina, Igor - Institut für Volkswirtschaftslehre, … - 2013

Contrary to most of the literature, which focuses only on the level of investment in innovation, this paper examines …

Persistent link: https://www.econbiz.de/10010888524

Competition and Innovation: An Experimental Investigation

Sacco, Dario; Schmutzler, Armin - Institut für Volkswirtschaftslehre, … - 2008

The paper analyzes the effects of more intense competition on ﬁrms’ incentives to invest in process innovations. We carry out experiments based on two-stage games, where R&D investment choices are followed by product market competition. As predicted by theory, an increase in the number of...

Persistent link: https://www.econbiz.de/10005566314

Is there a U-shaped Relation between Competition and Investment?

Sacco, Dario - Institut für Volkswirtschaftslehre, … - 2008

We argue that, in a simple setting, the relation between the intensity of competition and cost-reducing investment is U-shaped. We consider a two-stage game with cost-reducing investments followed by a linear differentiated Cournot duopoly. We first show that, except for firms that are much less...

Persistent link: https://www.econbiz.de/10005566316

Monopolistic Screening under Learning By Doing

Gaertner, Dennis - Institut für Volkswirtschaftslehre, … - 2007

This paper investigates the design of incentives in a dynamic adverse selection framework when agents’ production technologies display learning effects and agents’ rate of learning is private knowledge. In a simple two-period model with full commitment available to the principal, we show...

Persistent link: https://www.econbiz.de/10005819667

An Evolutionary Approach to Financial Innovation

Bettzuege, Marc Oliver; Hens, Thorsten - Institut für Volkswirtschaftslehre, …

stability of stationary equilibria. In accordance with the empirical literature on financial innovation, it is obtained that the … success of a financial innovation, a mutation, depends on a sufficiently high trading volume, marketing, and new and … respect to any further financial innovation while this is not necessarily true for a set of incomplete markets. …

Persistent link: https://www.econbiz.de/10005627854

Income Distribution and Demand-induced Innovations

Foellmi, Reto; Zweimüller, Josef - Institut für Volkswirtschaftslehre, …

We utilize Schmookler’s (1966) concept of demand-induced invention to study the role of income inequality in an endogenous growth model. As rich consumers can satisfy more wants than poor consumers, both prices and market sizes for new products, as well as their evolution over time, are...

Persistent link: https://www.econbiz.de/10005627897