Title: 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.