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...

We shed new light on the macroeconomic effects of rising temperatures. In the data, a shock to global temperature dampens expenditures in research and development (R&D). We rationalize this empirical evidence within a stochastic endogenous growth model, featuring temperature risk and growth...

This study was motivated by the quest to investigate how the interaction between corruption and institutional quality affects Nigeria's economic performance by testing the validity of the "sand the wheels" and "grease the wheels" corruption hypothesis through the Barro-type endogenous growth...