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Imperfect competition, technical progress and capital accumulation
Author(s) -
D'Onofrio Biancamaria,
Wigniolle Bertrand
Publication year - 2010
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/j.1742-7363.2010.00140.x
Subject(s) - economics , monopsony , imperfect competition , market power , microeconomics , profit (economics) , perfect competition , capital accumulation , technical change , competition (biology) , general equilibrium theory , productivity , monopoly , macroeconomics , biology , ecology
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.