This study investigates the sources of cross-country income disparities in the context of time series dynamics for both aggregate and sectoral levels. We first introduce a new approach for testing income disparity persistence across countries. The method proposed by Pesaran, Pierse, and Lee...

We characterize the equilibrium and optimal resource allocations in a general equilibrium model of monopolistic competition with multiple asymmetric sectors and heterogeneous firms. We first derive general results for additively separable preferences and general productivity distributions, and...