Large Firms and the Effect of Trends in Market Structure on Long-run Technology Growth

2019 ◽  
Author(s):  
Soroush Ghazi
Keyword(s):  
Market Structure ◽  
Large Firms ◽  
Long Run ◽  
Technology Growth

scholarly journals MONETARY POLICY AND ENDOGENOUS MARKET STRUCTURE IN A SCHUMPETERIAN ECONOMY

2014 ◽  
Vol 20 (5) ◽  
pp. 1127-1145 ◽  
Author(s):  
Angus C. Chu ◽  
Lei Ji
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rate ◽  
Market Structure ◽  
Firm Size ◽  
Growth Effect ◽  
Nominal Interest Rate ◽  
Long Run ◽  
Endogenous Market Structure ◽  
Number Of Firms

This study develops a monetary Schumpeterian model with endogenous market structure (EMS) to explore the effects of monetary policy on the number of firms, firm size, economic growth, and social welfare. EMS leads to different results from previous studies in which market structure is exogenous. In the short run, a higher nominal interest rate reduces the growth rates of innovation, output, and consumption and decreases firm size through reduction in labor supply. In the long run, a higher nominal interest rate reduces the equilibrium number of firms but has no steady-state effect on economic growth and firm size because of EMS. Although monetary policy has no long-run growth effect, increasing the nominal interest rate permanently reduces the levels of output, consumption, and employment. Taking transition dynamics into account, we find that welfare is decreasing in the nominal interest rate and the Friedman rule is optimal in this economy.

scholarly journals HIGHER EDUCATION SUBSIDY POLICY AND R&D-BASED GROWTH

2019 ◽  
Vol 24 (8) ◽  
pp. 2129-2168 ◽  
Author(s):  
Takaaki Morimoto ◽  
Ken Tabata
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Market Structure ◽  
Overlapping Generations Model ◽  
Subsidy Policy ◽  
Mass Higher Education ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Education Subsidy

We examine how a subsidy policy for encouraging more individuals to pursue higher education affects economic growth in an overlapping generations model of R&D-based growth, including both product development and process innovation. We show that such a policy may have a negative effect on the long-run economic growth rate. When the market structure adjusts partially in the short run, the effect of an education subsidy on economic growth is ambiguous and depends on the values of the parameters. However, when the market structure adjusts fully in the long run, the education subsidy expands the number of firms but reduces economic growth. These unfavorable predictions of an education subsidy on economic growth are partly consistent with the empirical findings that mass higher education does not necessarily lead to higher economic growth.

scholarly journals Market Structure and Spatial Price Dynamics

1991 ◽  
Vol 23 (2) ◽  
pp. 65-74 ◽  
Author(s):  
B. Wade Brorsen ◽  
Jean-Paul Chavas ◽  
Warren R. Grant
Keyword(s):  
Time Series ◽  
Market Structure ◽  
Market Share ◽  
Price Dynamics ◽  
Milled Rice ◽  
Price Adjustments ◽  
Long Run ◽  
Number Of Factors ◽  
Price Leader ◽  
Spatial Price

AbstractA method was developed with time series models to test hypotheses about the relationship between market structure and spatial price dynamics. Long-run dynamic multipliers measuring the magnitude of lagged adjustment for spatial milled rice prices were calculated from the time series model and used as the dependent variable in a regression model that included a number of factors expected to influence price determination. Results show that price adjustments were slower as regional submarket concentration increased and were faster in the regions with a higher market share. Arkansas, the state with the largest market share, was consistently a price leader.

scholarly journals Testing market structure assumptions for DSGE modelling in Croatia using the SVAR model with long-run restrictions

2017 ◽  
Vol 8 (1) ◽  
pp. 19-31
Author(s):  
Irena Palić ◽  
◽  
Ksenija Dumičić ◽  
Dajana Barbić ◽  
◽  
...  
Keyword(s):  
Market Structure ◽  
Long Run ◽  
Svar Model

scholarly journals Instrument policy mix and firm size: is there complementarity between R&D subsidies and R&D tax credits?

2021 ◽  
Author(s):  
Tea Petrin ◽  
Dragana Radicic
Keyword(s):  
Public Support ◽  
Policy Instruments ◽  
State Dependence ◽  
Policy Implications ◽  
Tax Credits ◽  
Large Firms ◽  
Policy Mix ◽  
Process Innovations ◽  
Long Run ◽  
Product And Process

AbstractNowadays, a rising number of evaluations investigates a multifaceted concept of the policy mix. Our study specifically focuses on the mix of two most frequently used supply-side instruments–R&D subsidies and R&D tax credits. Drawing on the longitudinal sample of Spanish manufacturing firms, we investigate whether there is a complementary interaction between these policy instruments with respect to product and process innovations. Moreover, by employing a dynamic random-effects probit estimator, we account for the persistence of innovation and endogeneity of public support. The results, that are separately estimated for SMEs and large firms, uniformly show evidence of no interplay between two policy instruments either in SMEs or large firms. However, among factors that influence the propensity to product and process innovations, by far, the largest effect is generated by true state dependence. These findings provide some policy implications for fostering product and process innovations in the long run.

scholarly journals The Degree of Competition in the UAE Banking Industry

2017 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
George Owusu Antwi ◽  
Rachna Banerjee ◽  
Amal Abeer Mohammed ◽  
Mariam Juma Muna-Habib
Keyword(s):  
Market Structure ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Balance Sheet ◽  
Competitive Environment ◽  
Input Price ◽  
Financial Products ◽  
Long Run ◽  
Banking Market

This paper has made an attempt to assess the degree of competition (or market structure) in the UAE banking sector using the H-statistics established by Panzar-Rosse (1987). Data of six years (2009-2015) have been extracted from various balance sheet and income statements of the banks. Pooled OSL estimator was used to obtain the coefficient. The inputs prices were found to be significant except the input price of labor. Total asset was registered to be positively significant. All other variables were not significant. The results of the study reveal that the UAE banking market structure is characterized by the monopolistic competition. That is, banks earned their revenue as if operating under conditions of monopolistic competition during this period. A robust check was performed to test for validity of PR-model. The results yield E-statistic which is consistent with long-run equilibrium. It is believed that both the small and the larger banks operate relatively equal more in a competitive environment. We recommend that UAE should develop new financial products and services that will provide convenience to customers while improving profitability.

Market structure and the performance of large firms

1974 ◽  
Vol 2 (1) ◽  
pp. 34-43 ◽  
Author(s):  
E. Barry Solomon
Keyword(s):  
Market Structure ◽  
Large Firms

Big Business im 20. Jahrhundert: Die 100 größten Arbeitgeber in Großbritannien und Deutschland in vergleichender Perspektive

2010 ◽  
Vol 51 (1) ◽  
Author(s):  
Martin Fiedler ◽  
Howard Gospel
Keyword(s):  
Twentieth Century ◽  
Large Firms ◽  
Big Business ◽  
Long Run ◽  
The Uk

AbstractThis paper examines the dynamics of large firms as measured by employment in the UK and Germany over the course of the twentieth century. The paper presents a comparative overview of the major trends in terms of size and composition. It then examines the dynamics of change in terms of entry, survival, and exit of large firms in both countries. The findings reveal both differences and similarities between the two countries. However, the analysis suggests that similarities are more striking in the long run.

Inflation, market structure, and innovation-driven growth with distinct cash constraints

2020 ◽  
Author(s):  
By Chien-Yu Huang ◽  
Juin-Jen Chang ◽  
Lei Ji
Keyword(s):  
Growth Rate ◽  
Monetary Policy ◽  
Numerical Analysis ◽  
Market Structure ◽  
Schumpeterian Growth ◽  
Long Run ◽  
Short Run ◽  
Endogenous Market Structure ◽  
The Relationship ◽  
D Investment

Abstract This article explores the effects of monetary policy (inflation) in a Schumpeterian growth model with an endogenous market structure and distinct cash (or cash-in-advance, CIA) constraints on consumption, production, and two types of R&D investment—quality-improving and variety-expanding R&D. We show that the relationship between inflation and growth is negative if quality-improving R&D (incumbent) is subject to the CIA constraint, but positive if variety-expanding R&D (entrant) is subject to the CIA constraint. Inflation has no effect on growth as consumption or production is subject to the CIA constraint. In addition, the firm size may either increase or decrease in response to inflation depending on which type of R&D is constrained by cash. With all CIA constraints properly imposed, a likely scenario in our numerical analysis shows that a rise in inflation leads the growth rate to exhibit a decrease in the short run but an increase in the long run. Moreover, our welfare analysis shows that Friedman’s rule, in general, is not socially optimal.

scholarly journals Market Structure and Competition of Islamic Banking in Indonesia

2018 ◽  
Vol 20 (3) ◽  
pp. 307-324
Author(s):  
. Sunarmo
Keyword(s):  
Panel Data ◽  
Market Structure ◽  
Monopolistic Competition ◽  
Islamic Banking ◽  
Long Run ◽  
Long Run Equilibrium

The aim of this study is to investigate the market structure and competition of Islamic Banking with H-statistics (Panzar and Roose) model using panel data over a period of July 2010 to September 2014. The result of H-statistics test for long-run equilibrium showed disequilibrium condition. It means that Islamic banking in developing stage. While the market structure and competition test confirmed that the value of the degree of H-statistics generally in monopolistic competition market with score 0.53 to 1.06.

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