Innovation, firm size distribution, and gains from trade

• المؤلفون الرئيسيون: CHEN, Yi-Fan, HSU, Wen-Tai, PENG, Shin-Kun
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2018
• الموضوعات: Innovation; Power law; Regular variation; Welfare gains from trade; Firm heterogeneity.; Growth and Development; Income Distribution; Technology and Innovation
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/soe_research/2196; https://ink.library.smu.edu.sg/context/soe_research/article/3195/viewcontent/productivity_investment_09042018_.pdf

We study a trade model with monopolistic competition a la Melitz (2003) that is standard except that firm heterogeneity is endogenously determined by firms innovating to enhance their productivities. We show that the equilibrium productivity and firm-size distributions exhibit power-law tails under...