Koren, Miklós (contributor); Tenreyro, Silvana (contributor) - 2005 - This version: December 3, 2004
Why is GDP so much more volatile in poor countries than in rich ones? To answer this question, we propose a theory of technological diversification. Production makes use of different input varieties, which are subject to imperfectly correlated shocks. As in endogenous growth models,...
