Growth: Scale or market-size effects?

Growth: With or Without Scale Effects?

The discovery of new ideas is the engine of growth in many recent growth models. As emphasized by Paul Romer (1986, 1990), ideas are different from most goods analyzed in economics in that they are nonrivalrous: the use of an idea by one person does not preclude, at a technological level, the simultaneous use of the idea by another person, or even by many people. This leads to a tight link betw...

Growth without Scale Effects

Is Inequality Harmful for Innovation and Growth? Price versus Market Size Effects

We introduce non-homothetic preferences into an R&D based growth model to study how demand forces hape the impact of inequality on innovation and growth. Inequality affects the incentive to innovate via a price effect and a market size effect. When innovators have a large productivity advantage over traditional producers a higher extent of inequality tends to increase innovators’prices and mark...

Market size, scale economies, and tourism market structure: A case ofᅡᅠhistoric water town tourism in China

The historic water towns in the Tai Lake Basin are representative of tourism products featuring a unique cultural heritage landscape and the local way of life in eastern China. Since the 1980s, this market has experienced phenomenal growth in both the quantity of water towns and the scale of tourist arrivals. Drawing from industrial economics theory and an agent-based modeling approach, we exam...

Ambulant Market Foods: Consumer Problem or Solution?

  Background: The sale of food by street vendors is an activity of economic, sanitary, and nutritional importance, but these foods can pose a high risk to the health of consumers in inadequate conditions of preparation and storage. The aim of this study was to investigate the preparation conditions and the hygienic-sanitary quality of food sold by street vendors in the vicinity of four campuse...