We develop a dynamic general equilibrium model of capital accumulation where credit is intermediated by banks operating in a Cournot oligopoly. The number of banks affects capital accumulation through two channels. First, it affects the quantity of credit available to entrepreneurs. Second, it affects banks’ decisions to collect costly information about entrepreneurs, and thus determines the ef...

What are the implications of cross-country interdependencies for capital accumulation? I tackle this question by introducing bilateral international externalities into a neoclassical growth model with n otherwise standard economies. In particular, I ask under which conditions there exists a unique steady state and when such a steady state is locally stable. I present a stability proof that uses...

How do taxes affect human capital accumulation? This question has been studied extensively in the context of two model classes: overlapping generations (OLG) and infinite horizon (IH) models. These embody very different assumptions about the intergenerational transmission of physical and human capital. OLG models typically abstract from intergenerational linkages, while IH models implicitly ass...

Using standard control theory in determining the firm's optimal dynamic investment decisions it turns out that it is always optimal to approach a long run optimal level of capital. In some cases, this equilibrium is reached within finite time, but usually it will be approached asymptotically. Also a necessary condition is determined under which history dependent equilibria can occur. Some of th...

This paper seeks to develop a literature-based perspective on intellectual property from the standpoint of business strategy and strategic human resource management. Distinctive competitive advantage is increasingly built on a firm’s knowledge, one of the principal ingredients of intellectual capital. Competitive capability is strongly influenced by the organisation’s ability to develop, differ...

T he accumulation of capital in Europe is strongly and positively associated with the accumulation of alien invasive species. In a study of the drivers behind biological invasions in Europe, Pyšek et al. (1) use European macroecological, economic, and demographic data to explain the variation in alien species richness of bryophytes, fungi, vascular plants, terrestrial insects, aquatic invertebr...

This paper accounts for China’s economic growth since 1980 in a unified endogenous growth model in which a sequencing of physical capital accumulation, human capital accumulation and innovation drives the rise in China’s aggregate income. The first stage is characterized by physical capital accumulation. The second stage includes both physical and human capital accumulation, and in the final st...

This paper develops an overlapping generations model to analyze the consequences of demographic structure changes induced by an exogenous shift in the birth rate. We …rst show that a …nite growth rate of the population that maximizes long-run capital per capita exists. Then, we examine the theoretical properties of this growth rate by showing that: (i) it corresponds to the demographic structur...

Overview In this chapter we examine the relationship between increases in the capital stock and economic growth. We first discuss whether an economy can always grow if it increases only its capital stock. Under certain plausible assumptions, we show this is not possible, and that poorer countries should therefore grow faster than wealthy ones, whose economies will depend more on technological p...