Marimon, Ramon; Quadrini, Vincenzo - In: Journal of Economic Theory 146 (2011) 3, pp. 976-1008
We develop a dynamic model with two-sided limited commitment to study how barriers to competition, such as restrictions to business start-up and non-competitive covenants, affect the incentive to accumulate human capital. When contracts are not enforceable, high barriers lower the outside value...
