TY  - JOUR
AU  - Marimon,Ramon
AU  - Quadrini,Vincenzo
TI  - Competition, Innovation and Growth with Limited Commitment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12474
PY  - 2006
Y2  - August 2006
UR  - http://www.nber.org/papers/w12474
L1  - http://www.nber.org/papers/w12474.pdf
N1  - Author contact info:
Ramon Marimon
European University Institute
Max Weber Programme
Via delle Fontanelle 20
I-50016 San Domenico di Fiesole
ITALY
Tel: 34-93-542-2707
Fax: 34-93-542-1746
E-Mail: ramon.marimon@eui.eu

Vincenzo Quadrini
Department of Finance and Business Economics
Marshall School of Business
University of Southern California
701 Exposition Boulevard
Los Angeles, CA 90089
Tel: 213/740-6521
Fax: 213/740-6650
E-Mail: quadrini@usc.edu
AB  - 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.
ER  -