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The authors develop a framework for studying trade in horizontally and vertically differentiated products. In their model, consumers with heterogeneous incomes and tastes purchase a homogeneous good and make a discrete choice of quality and variety of a differentiated product. The distribution...
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as a function of structural parameters. We find that greater firm heterogeneity increases unemployment, wage inequality … and income inequality, whereas greater worker heterogeneity has ambiguous effects. We also find that labor market … frictions have non-monotonic effects on aggregate unemployment and inequality through within- and between-sector components …
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The authors develop a framework for studying trade in horizontally and vertically differentiated products. In their model, consumers with heterogeneous incomes and tastes purchase a homogeneous good and make a discrete choice of quality and variety of a differentiated product. The distribution...
Persistent link: https://www.econbiz.de/10012975700