NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Growth, Trade, and Inequality

Gene M. Grossman, Elhanan Helpman

NBER Working Paper No. 20502
Issued in September 2014
NBER Program(s):   EFG   ITI

We introduce firm and worker heterogeneity into a model of innovation-driven endogenous growth. Individuals who differ in ability sort into either a research sector or a manufacturing sector that produces differentiated goods. Each research project generates a new variety of the differentiated product and a random technology for producing it. Technologies differ in complexity and productivity, and technological sophistication is complementary to worker ability. We study the co-determination of growth and income inequality in both the closed and open economy, as well as the spillover effects of policy and conditions in one country to outcomes in others.

download in pdf format
   (442 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w20502

Users who downloaded this paper also downloaded* these:
Martin, Nataraj, and Harrison w19942 In with the Big, Out with the Small: Removing Small-Scale Reservations in India
Leibovici and Waugh w20498 International Trade and Intertemporal Substitution
Helpman, Itskhoki, Muendler, and Redding w17991 Trade and Inequality: From Theory to Estimation
Patel, Wang, and Wei w20236 Global Value Chains and Effective Exchange Rates at the Country-Sector Level
La Porta and Shleifer w20205 Informality and Development
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us