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Motivated by growth models based on the variety of capital goods, recent empirical studies have established links between productivity and several trade-based measures of product variety, carrying the implication that these measures may represent technology. We study this implication by...
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By combining and extending the previous literature, we develop and test a gravity specification that views bilateral gravity equations rooted in a Heckscher-Ohlin framework as statistical relationships constrained on countries’ multilateral specialization patterns. According to our results,...
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Two economies, a centrally planned economy (CPE) and a post-transition regulated mixed market economy (RMME), are modeled in a static general equilibrium setting that allows for trade-offs among the quantity, quality and variety of production. Equilibrium in these economies is determined by the...
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