Mergers, innovation, and inequality
Series
CORE Discussion Papers
Type
discussion paper
Date Issued
2004
Author(s)
Abstract
This paper presents a standard endogenous growth framework in which the source of growth is represented by vertical innovation. The crucial assumption we introduce is that there is a positive information gap concerning the discovery of innovation. The aim of reducing the information dissemination lag provides incentives for firms to decide
to merge their research efforts. At the same time we find that the skilled/unskilled wage gap is strongly related to this phenomenon. We prove that changing antitrust attitudes toward efficienc-motivated mergers in contestable industries may simultaneously explain observed changes in the industry structure, in qualitative innovation, in wage inequality, and in labor supply composition.
to merge their research efforts. At the same time we find that the skilled/unskilled wage gap is strongly related to this phenomenon. We prove that changing antitrust attitudes toward efficienc-motivated mergers in contestable industries may simultaneously explain observed changes in the industry structure, in qualitative innovation, in wage inequality, and in labor supply composition.
Language
English
Keywords
Growth
Firm-Size
Innovation Process
Antitrust Policy
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Refereed
No
Publisher
Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)
Number
2004006
Start page
18
Subject(s)
Eprints ID
222140
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coredp_2004_06.pdf
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201.98 KB
Format
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