The Product Cycle and Inequality
21 Pages Posted: 7 Dec 2004 Last revised: 26 Oct 2022
Date Written: November 2004
Abstract
This paper models the product cycle and explains how it relates to world inequality. In the model, both phenomena arise because skilled people have a comparative advantage in making high-tech products. The model can explain up to a 10:1 income differential between people and up to a 7:1 differential between countries.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Competition, Innovation and Growth with Limited Commitment
By Ramon Marimon and Vincenzo Quadrini
-
Competition, Innovation and Growth with Limited Commitment
By Ramon Marimon and Vincenzo Quadrini
-
Financial Frictions on Capital Allocation: A Transmission Mechanism of TFP Fluctuations
By Kaiji Chen and Zheng Michael Song
-
Neoclassical Growth and the Adoption of Technologies
By Diego Comin and Bart Hobijn
-
Heterogeneous Firms, Productivity and Poverty Traps
By Levon Barseghyan and Riccardo Dicecio
-
Heterogeneous Firms, Productivity, and Poverty Traps
By Levon Barseghyan and Riccardo Dicecio
-
Technology Adoption with Exit in Imperfectly Informed Equity Markets
By Katrin Tinn
-
Financial Friction, Capital Reallocation and News-Driven Business Cycles
By Kaiji Chen and Zheng Michael Song
-
Externalities, Endogenous Productivity, and Poverty Traps
By Levon Barseghyan and Riccardo Dicecio