Koren, Miklós (contributor); Tenreyro, Silvana (contributor) - 2005 - This version: December 3, 2004
evolves endogenously in response to profit incentives. Complexity (and hence output stability) is positively related with the …Why is GDP so much more volatile in poor countries than in rich ones? To answer this question, we propose a theory of …. As in endogenous growth models, technological progress increases the number of varieties, raising average productivity …