Coto-Martínez, Javier; Garriga, Carlos; … - Federal Reserve Bank of St. Louis - 2007
endogenous growth (e.g., Romer, 1996) and international trade literatures. In our model,
the Dixit and Stiglitz (1977 … competitive �rms using the following
technology (as in Ethier, 1982; Benassy, 1996; Kim, 2004)7:
Y =
zv(1 )
Z z
0
x1 i di … equilibrium, all �rms
in the intermediate goods sector produce the same output level x and, thus, aggregate output
is Y = zv+1x …