Abstract
When the returns to scale of a production process vary with the intensity it is operated at, an AK model with constant returns to scale in production arises endogenously due to replication driven by profit maximization. If replication occurs at the efficiency-maximizing scale, as with perfect competition, the result applies also when the number of production processes must be discrete, thus, overcoming the so-called integer problem. When competition is imperfect, there is only convergence toward the AK model for large enough input use, so an economy is more prone to stalling in a steady state without growth, the smaller and less competitive it is.
Publisher
Cambridge University Press (CUP)
Subject
Economics and Econometrics
Reference49 articles.
1. Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?
2. A Contribution to the Theory of Economic Growth
3. Singh A. (2002) Competition and competition policy in emerging markets: International and developmental dimensions. United Nations Conference on Trade and Development, G-24 Discussion Papers 18.
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献