No. 1, Winter 1997, pp. The quality of human capital, a subject discussed rarely if ever in theories of endogenous technological progress, is shown to affect the model economy's long run growth rate. Intra-Industry Competitiveness and Economic Growth , Journal of Economics and Business , Vol. The Cass-Koopmans model of economic growth is reworked with imperfect competition in the final good sector. In the special case of the AK model a direct link is shown between the degree of intra-industry competition and the rate of growth.
Imperfect competition generates excess profits at the expense of payments to labor and capital.
In response to the increase in the return to capital, capital accumulation increases and growth speeds up. Vertical Product Differentiation and the Value of Time , International Economic Journal , Vol. The paper presents a model of international trade in goods that are ranked by quality. The model differs from existing theories of trade under vertical product differentiation in several ways. The main difference is in the way quality is modeled.