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DeFiPP Seminar

Reconsidering the Market Size Effect in Innovation and Growth (with Kiminori Matsuyama and Mathieu Parenti)

Catégorie : conférence/cours/séminaire (spécialisé)
Date : 23/02/2021 16:00 - 23/02/2021 17:30
Lieu : via TEAMS
Orateur(s) : Hélène Latzer (Paris-I, CNRS and Université Saint-Louis)
Organisateur(s) : Christian Kiedaisch


In the standard horizontal innovation model of endogenous growth, larger economies innovate more and grow faster. Due to the homotheticity of preferences, however, it does not matter whether the large market size comes from a large population or a high per capita expenditure. In this paper, we extend the standard model to allow for nonhomothetic preferences, while preserving its balanced growth property. Among others, we show that, holding the size fixed, economies with higher per capita expenditure and smaller populations innovate more and grow faster (slower) in the case of increasing (decreasing) relative love for variety.


Contact : Christian Kiedaisch -
Télecharger : vCal