Grossman, Gene M.; Helpman, Elhanan; Kircher, Philipp - Scottish Institute for Research in Economics (SIRE) - 2013
We develop a neoclassical trade model with heterogeneous factors of production. We consider a world with two factors, labor and .managers., each with a distribution of ability levels. Production combines a manager of some type with a group of workers. The output of a unit depends on the types of...