We develop a model of repeated product improvements in a continuum of sectors. Each product follows a stochastic progression up a quality ladder. Progress is not uniform across sectors, so an equilibrium distribution of qualities evolves over time. But the rate of aggregate growth is constant....

Contents -- Preface -- 1. Background -- 2. Accumulation -- 3. Productivity -- 4. Innovation -- 5. Interdependence -- 6. Inequality -- 7. Institutions and Politics -- Glossary -- Notes -- References -- Index

We develop a model of repeated product improvements in a continuum of sectors. Each product follows a stochastic progression up a quality ladder. Progress is not uniform across sectors, so an equilibrium distribution of qualities evolves over time. But the rate of aggregate growth is constant....