E, Giordani Paolo; Luca, Zamparelli - In: The B.E. Journal of Macroeconomics 8 (2008) 1, pp. 1-30
We extend the class of quality-ladder growth models (Grossman and Helpman, 1991, Segerstrom, 1998 and others), to encompass an economy with asymmetric fundamentals. In contrast to the standard framework, in our model industries may differ in terms of their innovative potential (quality jumps and...