Aghion, Philippe; Fedderke, Johannes W.; Howitt, Peter; … - 2008
to the world economy, the
less innovation or learning-by-doing domestic producers gain by opening up to trade.
1
This is … possibility of innovating in that sector. She is the incumbent monopolist, and an innovation would
enable her to produce with a … her productivity parameter stays the same: A
it
= A
i,t−1
.
Innovation with any given probability μ entails the cost c
it …