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Product-Variety, Population, Competition, and Growth

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  • Alberto Bucci

Abstract

This paper analyzes how population and product market competition (PMC) interact with each other in affecting productivity growth. We find that only a fully endogenous growth model with purposeful investment in human capital, an input in the production of intermediate goods, can simultaneously predict (as suggested by the available theoretical/empirical literature) that the relationships between population and economic growth rates and between PMC and economic growth are non-monotonic. The trade-off between specialization-gains and complexity-costs arising from an expansion of product-variety is crucial in determining the sign of these correlations, and the possible complementarity between two key variables in economic growth.

Suggested Citation

  • Alberto Bucci, 2011. "Product-Variety, Population, Competition, and Growth," DEGIT Conference Papers c016_006, DEGIT, Dynamics, Economic Growth, and International Trade.
    • Handle: RePEc:deg:conpap:c016_006
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    File URL: http://degit.sam.sdu.dk/papers/degit_16/c016_006.pdf
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    References listed on IDEAS

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    Cited by:

    1. Dmitry A. Veselov, 2013. "Redistribution and the political support of free entry policy in the Schumpeterian model with heterogenous agents," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00830027, HAL.
    2. Dmitry A. Veselov, 2015. "Democratization and Barriers to Entry in a Two-Dimensional Voting Model," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01158139, HAL.
    3. Vladimir Matveenkov, 2012. "Structure of Equilibria in a Model of Endogenous Growth with Horizontal Innovations," DEGIT Conference Papers c017_051, DEGIT, Dynamics, Economic Growth, and International Trade.

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    More about this item

    Keywords

    Endogenous and semi-endogenous growth; Population (size and growth); Human capital; Horizontal innovation; Scale effects; Monopolistic competition;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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