Economic growth, increasing results and monopolist competition

Vol. 16 No. 2 (1996)

Apr-Jun / 1996
Published April 1, 1996
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Ferreira, Pedro Cavalcanti, and Roberto Ellery Jr. 1996. “Economic Growth, Increasing Results and Monopolist Competition”. Brazilian Journal of Political Economy 16 (2):252-73.

Economic growth, increasing results and monopolist competition

Pedro Cavalcanti Ferreira
Escola de Pós-Graduação em Economia da Fundação Getúlio Vargas – FGV, Rio de Janeiro/RJ, Brasil.
Roberto Ellery Jr.
University of Pennsylvania, Philadelphia/PA, United States.
Brazilian Journal of Political Economy, Vol. 16 No. 2 (1996), Apr-Jun / 1996, Pages 252-273


In this article we investigate the theoretical shortcomings of traditional
neoclassical growth models and how the new literature of endogenous growth has emerged
to overcome these shortcomings. We study the theoretical reasons for hypothesis in the
traditional models – some of them necessary for the existence of equilibrium – that implied
counter-factual empirical results, like convergence. We will investigate how these hypotheses
were relaxed or substituted, up to a point where the new literature ends up working with
increasing returns and monopolist competition models of Schumpeterian inspiration that
deliver sustained growth and creative destruction.

JEL Classification: O41; O11.

Keywords: Endogenous growth models economic growth Neo-Scjumpeterian analysis