Essays on market structure, location and growth
Abstract (Summary)This dissertation collects essays that focuses on two branches of the economic literature on imperfect competition: the one of IO on the decision of firms' location and the one of economic growth on market structure and technological progress. Chapter 2 deals with the issue of firms' location and proposes a model that sheds light on how the geographic distribution of firms is affected by strategic interaction in presence of vertically differentiated products. The remaining Chapters, instead, have a common root; they, in fact, deal with the link existing between market structure and growth. More precisely, Chapter 3 studies how knowledge spillovers across firms influence this link and introduces the basic framework which is further extended in Chapters 4 and 5 to allow for strategic interaction and multi-product firms respectively. In all these models technological progress takes the form of cost reductions. The model-setting considered in these Chapters belongs to the class of creative accumulation models, whose introduction in the economic literature is relatively recent and can be attributed to Smulders and van de Klundert and Peretto. Finally, Chapter 6 follows the creative destruction tradition initiated by Grossman and Helpman and Aghion and Howitt and develops a growth model with product quality innovations of random size. In all the Chapters of this dissertation, we adopt a normative perspective by comparing the market equilibrium solution to the optimal one.
Source Type:Master's Thesis
Keywords:innovation growth location choices market structure
Date of Publication:08/30/2007