Competition, innovation and growth with limited commitment

Description

"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"--National Bureau of Economic Research web site.

Subjects

Series Statement

• NBER working paper series -- working paper 12474
• Working paper series (National Bureau of Economic Research : Online) -- working paper no. 12474.

Links

• External source