Caliendo, Lorenzo; Rossi-Hansberg, Esteban - C.E.P.R. Discussion Papers - 2011
theory, heterogeneity in demand leads to heterogeneity in productivity and other firms' outcomes. We use the theory to …A firm's productivity depends on how production is organized given the level of demand for its product. To capture this … mechanism, we develop a theory of an economy where firms with heterogeneous demands use labor and knowledge to produce …