Gil, Pedro Rui Mazeda; Brito, Paulo; Afonso, Óscar - Faculdade de Economia, Universidade do Porto - 2010
This paper develops a tournament model of horizontal and vertical R&D under a lab-equipment specification. A key feature is that the overall growth rate is endogenous, as the splitting of the growth rate between the intensive and the extensive margin is itself endogenous. This setup gives rise...