Katsimi, Margarita; Moutos, Thomas - CESifo - 2006
In this paper we build a model of trade in vertically differentiated products and find that income inequality can … inequality on the demand for imports is then assessed by examining US data for the 1948-1996 period. Using the Johansen (1988 …, income, and relative prices). However, once we include a measure of inequality in our VAR specification we find not only …