{"product_id":"investment-rd-and-long-run-growth-dietmar-hornung-9783540425281","title":"Investment, R\u0026d, and Long-Run Growth","description":"In the 1990s, growth theory has incorporated imperfect competition in its investigations. This innovation has proven to be seminal: Cleviating from growth models with perfect competition, the new framework featured forward- looking entrepreneurs. Firms maximize profits intertemporarily, i. e. their in- vestment leads to instantaneous sunk costs and offers flows of future profits. Firms finance this investment by launching shares. The capital market is per- fectly competitive, implying that the return on a share is equal to the return on a bond. As opposed to the capital market, the goods market is imperfectly competitive. As a result of investment, firms enjoy market power. That is, firms may acquire the capability to provide a product that is differentiated in, e. g., styling, technology, accessibility, or reputation. The launch of a dif- ferentiated product allows to capture a market niche, and successful firms may price above marginal cost. The resulting profit flows are channelled to the firms' shareholders. The introduction of monopolistic competition into growth theory is valuable: real world economies may be portrayed rather by such an imperfect competition framework than by a perfect competition approach. Starting with Romer (1990), in growth theory, modeling of imperfect competition has been notoriously bound to a focus on the impact of research and development (R\u0026amp;D) on economic growth. In the existing literature, growth-affecting investment is restricted to R\u0026amp;D investment.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eAuthor:\u003c\/b\u003e Dietmar Hornung\u003cbr\u003e\u003cb\u003eISBN-10:\u003c\/b\u003e 3540425284\u003cbr\u003e\u003cb\u003eISBN-13:\u003c\/b\u003e 9783540425281\u003cbr\u003e\u003cb\u003ePublisher:\u003c\/b\u003e Springer\u003cbr\u003e\u003cb\u003eLanguage:\u003c\/b\u003e English\u003cbr\u003e\u003cb\u003ePublished:\u003c\/b\u003e 09\/11\/2001\u003cbr\u003e\u003cb\u003ePages:\u003c\/b\u003e 196\u003cbr\u003e\u003cb\u003eFormat:\u003c\/b\u003e Paperback\u003cbr\u003e\u003cb\u003eWeight:\u003c\/b\u003e 0.56lbs\u003cbr\u003e\u003cb\u003eSize:\u003c\/b\u003e 8.50h x 5.50w x 0.46d","brand":"Dietmar Hornung","offers":[{"title":"Paperback","offer_id":44522598596863,"sku":"9783540425281","price":54.99,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0662\/2982\/9887\/files\/img_433175ef-7cd1-48cb-96b1-c90aa7d86334.jpg?v=1700158083","url":"https:\/\/www.whiterainbookhouse.com\/products\/investment-rd-and-long-run-growth-dietmar-hornung-9783540425281","provider":"WR Book House","version":"1.0","type":"link"}