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We develop a general equilibrium model of vertical innovation in which multiple firms compete monopolistically in the … the product cycle as it is superseded by further innovations. The intrinsic reason that innovation happens in our economy … is not one of displacing the incumbent; rather, innovation is a means to differentiate oneself from existing firms and …
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This paper constructs a general equilibrium model of equilibrium unemployment by combining an endogenous growth model with a variant of equilibrium search theory. The analysis offers two explanations for the causes of widening wage gap between skilled and less-skilled labor, and rising...
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