Imperfect competition,technical progress and capital accumulation |
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Authors: | Biancamaria D'Onofrio Bertrand Wigniolle |
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Institution: | 1. Dipartimento di Matematica, Universita di Roma “La Sapienza,” Rome, Italy.;2. Paris School of Economics, University of Paris I, Paris, France. Email: wignioll@univ‐paris1.fr |
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Abstract: | This paper constructs a dynamic equilibrium growth model, in which some firms act as monopsonies on the labor market. The framework is an overlapping generations growth model with altruistic agents. Two types of firms exist, competitive and non‐competitive, the latter being endowed with a more productive technology. They behave strategically on the labor market, in taking into account the impact of their demand for labor on the equilibrium wage and on their profit. In this framework, the impact of technical progress on capital accumulation can be positive or negative, depending on its effect on monopsony power. |
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Keywords: | imperfect competition capital accumulation technical progress D43 D9 O3 |
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