We study the implications of microeconomic heterogeneity for aggregate technology, showing that the aggregate elasticity of substitution between capital and labor can be expressed as a simple function of plant level structural parameters and sufficient statistics for plant heterogeneity. This...

This paper constructs a multisectoral general equilibrium growth model based on Marshallian externalities. Using homogenous accumulation and production functions, an analytical solution is derived. Making use of the theory of nonnegative matrices, I discuss the properties of the model and derive...

This paper shows that firm profits (and losses), and value added, are strongly related to individual hourly basic wages for most employees, as well as to the total earnings measures used previously but correlated with working time. Capital intensity is independently important without reducing...