Ederington, Josh; McCalman, Phillip - 2009
In this paper, we build a dynamic model with endogenous firm-level productivity that generates firm heterogeneity as an … equilibrium outcome. Firm heterogeneity arises in equilibrium from the gradual diffusion of a technological innovation through the … positive impact on the equilibrium rate of adoption (and hence firm-level productivity). In addition, the model can replicate …