Endogenous Technical Change in a Competitive Economy

@article{Hellwig2001EndogenousTC,
  title={Endogenous Technical Change in a Competitive Economy},
  author={Martin F. Hellwig and Andreas Irmen},
  journal={J. Economic Theory},
  year={2001},
  volume={101},
  pages={1-39}
}
We develop a model of endogenous growth in an economy with competitive markets. Technical change arises from the intentional actions of entrepreneurs looking for profits. Opportunities for such profits stem from inframarginal rents. This provides a counterexample to the widespread view that endogenous technical change is possible only if innovating firms can expect to reap monopoly or oligopoly rents. The model has a unique equilibrium which involves steady growth at a positive rate… CONTINUE READING

From This Paper

Topics from this paper.

References

Publications referenced by this paper.
Showing 1-10 of 14 references

Wages and productivity growth in a competitive industry

J. Economic Theory • 2003
View 6 Excerpts
Highly Influenced

Sunk costs, market structure, and growth

P. Peretto
Int. Econ. Rev • 1996
View 3 Excerpts
Highly Influenced

Helpman, ``Innovation and Growth in the Global Economy,'

E. G. Grossman
1991
View 7 Excerpts
Highly Influenced

``On the Role of Aggregate Demand Externalities in Quality-Ladder Models of Endogenous Growth,'' WWZ-Discussion Paper 9311

Ch. Klingen
University of Basel, • 1993
View 1 Excerpt

``The Conceptual Structure of Macroeconomic Models: The Income Equation,'' WWZ-Discussion Paper 9308

M. Hellwig
University of Basle, • 1993
View 1 Excerpt

Inventive activity, industrial organization and economic growth, in ``Models of Economic Growth'

K. Shell
(J. A. Mirrlees and N. H • 1973
View 2 Excerpts

``Growth Theory: An Exposition,'' The Radcliffe Lectures, London, 1970

R. Solow
1970
View 1 Excerpt

On the concept of optimal growth, in ``The Econometric Approach to Development Planning'' (T

T. Koopmanns
1965
View 1 Excerpt