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| Colin Davis |
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| ''Communication costs, network externalities, and long-run growth'' |
| ( 2007, Vol. 15 No.5 ) |
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| This note examines the effect of per-period communication costs in a model of expanding product variety. It is shown that while a decrease in communication costs leads to growth in aggregate output, this growth is only transitional with the growth rate falling to zero in the long run as the result of a congestion effect. |
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| Keywords: |
JEL: O3 - Technological Change; Research and Development: General
O4 - Economic Growth and Aggregate Productivity: General |
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| Manuscript Received : Nov 02 2006 | | Manuscript Accepted : Feb 13 2007 |
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