Competition And Growth: Reconciling Theory And Evidence (Zeuthen Lectures)

Aghion, Philippe, Griffith, Rachel

ISBN 10: 0262012189 / ISBN 13: 9780262012188

Editore: The MIT Press, 2005

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Dati bibliografici

• Titolo: Competition And Growth: Reconciling Theory And Evidence (Zeuthen Lectures)
• Editore: The MIT Press
• Data di pubblicazione: 2005
• Lingua: Inglese
• ISBN 10: 0262012189
• ISBN 13: 9780262012188
• Rilegatura: Hardcover
• Condizione: New

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Riassunto

Though competition occupies a prominent place in the history of economic thought,among economists today there is still a limited, and sometimes contradictory, understanding of itsimpact. In Competition and Growth, Philippe Aghion and Rachel Griffith offer the first seriousattempt to provide a unified and coherent account of the effect competition policy and deregulatedentry has on economic growth.The book takes the form of a dialogue between an applied theoristcalling on "Schumpeterian growth" models and a microeconometrician employing new techniques to gaugecompetition and entry. In each chapter, theoretical models are systematically confronted withempirical data, which either invalidates the models or suggests changes in the modeling strategy.Aghion and Griffith note a fundamental divorce between theorists and empiricists who previouslyworked on these questions. On one hand, existing models in industrial organization or new growtheconomics all predict a negative effect of competition on innovation and growth: namely, thatcompetition is bad for growth because it reduces the monopoly rents that reward successfulinnovators. On the other hand, common wisdom and recent empirical studies point to a positive effectof competition on productivity growth. To reconcile theory and evidence, the authors distinguishbetween pre- and post-innovation rents, and propose that innovation may be a way to escapecompetition, an idea that they confront with microeconomic data. The book's detailed analysis shouldaid scholars and policy makers in understanding how the benefits of tougher competition can beachieved while at the same time mitigating the negative effects competition and imitation may haveon some sectors or industries.

Informazioni sugli autori

Rachel Griffith is Deputy Director at the Institute for Fiscal Studies (IFS) and a Reader in Industrial Organization at Unviersity College London.

Rachel Griffith is Deputy Director at the Institute for Fiscal Studies (IFS) and a Reader in Industrial Organization at University College London.