This paper studies how productivity shifts at the level of the firm are transmitted to aggregate industry productivity … in a model of heterogeneous firms. We analyse both uniform productivity shifts, and catching up by reducing the … productivity differentials between firms. The two kinds of shifts affect aggregate productivity in different ways and through …

The paper analyses how a tractable representation of productivity heterogeneity among firms modifies the standard Dixit … analysis. The equilibrium adjustments of industry aggregates, such as the number of firms, output and the productivity of …

relationship between the relative price of non traded goods and real factors like fi scal policies and productivity disturbances. …

(MC) sector in which firms may have heterogeneous productivity levels. Domestic protection brings gains from expanding the …

(MC) sector in which firms may have heterogeneous productivity levels. Analysis encompasses cases in which the domestic MC …

This paper discusses welfare costs of a decrease in productivity and argues that there are two important channels which … utility and common productivity across firms fail to capture the extensive margin. To address this problem, this paper … introduces “continuum-quadratic” utility while keeping the other assumptions unchanged and finds that lowering productivity …

This paper examines productivity and returns to scale under the assumption of monopolistic competition using Japanese … firm-level data. Although differentiating products (services) is considered important in firms’ strategies and productivity …>). Our results indicate that the standard production function is not relevant to estimate productivity in imperfectly …