Skip to main content
SpringerLink
Log in

Investment, R&D, and Long-Run Growth

  • Book
  • © 2002

Overview

Authors:
  1. Dietmar Hornung

    1. Emerging Markets Research, DGZ Deka Bank Deutsche Kommunalbank, Frankfurt/Main, Germany

    View author publications

    You can also search for this author in PubMed   Google Scholar

Part of the book series: Lecture Notes in Economics and Mathematical Systems (LNE, volume 509)

This is a preview of subscription content, log in via an institution to check access.

Access this book

Log in via an institution
eBook USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Other ways to access

Licence this eBook for your library

Institutional subscriptions

Table of contents (14 chapters)

  1. Front Matter

    Pages I-XVI
    Download chapter PDF

  2. Introduction

    1. Introduction

      • Dietmar Hornung
      Pages 1-3

  3. An Outline of Related Research

    1. Front Matter

      Pages 5-5
      Download chapter PDF

    2. Literature on R&D-Based Growth

      • Dietmar Hornung
      Pages 7-11

    3. Evidence that Suggests a Broader View

      • Dietmar Hornung
      Pages 13-22

  4. Product Differentiation due to R&D

    1. Front Matter

      Pages 23-23
      Download chapter PDF

    2. Expanding Product Variety

      • Dietmar Hornung
      Pages 25-41

    3. Improving Product Quality

      • Dietmar Hornung
      Pages 43-57

  5. Product Differentiation due to Investment

    1. Front Matter

      Pages 59-59
      Download chapter PDF

    2. The Ramsey Model with Imperfect Competition

      • Dietmar Hornung
      Pages 61-72

    3. A Generalized AK Model

      • Dietmar Hornung
      Pages 73-81

    4. Learning-by-Doing and the Decline in the Relative Price of Capital

      • Dietmar Hornung
      Pages 83-93

  6. R&D Revisited

    1. Front Matter

      Pages 95-95
      Download chapter PDF

    2. R&D’s Exhaustion Effect

      • Dietmar Hornung
      Pages 97-109

    3. Quality Ladders and Excessive Growth

      • Dietmar Hornung
      Pages 111-121

    4. Growth without Scale Effects

      • Dietmar Hornung
      Pages 123-132

  7. Two-Stage Input Differentiation

    1. Front Matter

      Pages 133-133
      Download chapter PDF

    2. R&D and Physical Capital

      • Dietmar Hornung
      Pages 135-159

    3. Skilled Workers: Schooling and Specialization

      • Dietmar Hornung
      Pages 161-174

    4. Concluding Remarks

      • Dietmar Hornung
      Pages 175-176
Back to top

Keywords

About this book

In the 1990s, growth theory has incorporated imperfect competition in its investigations. This innovation has proven to be seminal: Cleviating from growth models with perfect competition, the new framework featured forward­ looking entrepreneurs. Firms maximize profits intertemporarily, i. e. their in­ vestment leads to instantaneous sunk costs and offers flows of future profits. Firms finance this investment by launching shares. The capital market is per­ fectly competitive, implying that the return on a share is equal to the return on a bond. As opposed to the capital market, the goods market is imperfectly competitive. As a result of investment, firms enjoy market power. That is, firms may acquire the capability to provide a product that is differentiated in, e. g. , styling, technology, accessibility, or reputation. The launch of a dif­ ferentiated product allows to capture a market niche, and successful firms may price above marginal cost. The resulting profit flows are channelled to the firms' shareholders. The introduction of monopolistic competition into growth theory is valuable: real world economies may be portrayed rather by such an imperfect competition framework than by a perfect competition approach. Starting with Romer (1990), in growth theory, modeling of imperfect competition has been notoriously bound to a focus on the impact of research and development (R&D) on economic growth. In the existing literature, growth-affecting investment is restricted to R&D investment.

Authors and Affiliations

  • Emerging Markets Research, DGZ Deka Bank Deutsche Kommunalbank, Frankfurt/Main, Germany

    Dietmar Hornung

Bibliographic Information

Publish with us

Policies and ethics

Back to top

Search

Navigation