@techreport{NBERw12474,
 title = "Competition, Innovation and Growth with Limited Commitment",
 author = "Ramon Marimon and Vincenzo Quadrini",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "12474",
 year = "2006",
 month = "August",
 URL = "http://www.nber.org/papers/w12474",
 abstract = {We study how barriers to competition---such as restrictions to business start-up and strict enforcement of covenants or IPR---affect the investment in knowledge capital when contracts are not enforceable. These barriers lower the competition for human capital and reduce the incentive to accumulate knowledge. We show in a dynamic general equilibrium model that this mechanism has the potential to account for significant cross-country income inequality.},
}