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This paper develops a fully-endogenous, variety-expansion growth model with firm-specific quality heterogeneity, limit pricing, and an endogenous distribution of markups. Trade induces only firms with high-quality products to export, whereas firms with low-quality products serve only the...
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This paper estimates a dynamic general equilibrium model of entry, exit, and endogenous productivity growth …. Productivity is endogenous both at the industry level (firms enter and exit) and at the firm level (firms invest in productivity …-enhancing activities). The focus of the paper is on two activities that make productivity-enhancing investments more attractive, namely …
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