Koren, Miklós (contributor); Tenreyro, Silvana (contributor) - 2005 - This version: December 3, 2004
. The new insight is that an expansion in the number of varieties also lowers the volatility of output. This is because …. As in endogenous growth models, technological progress increases the
number of varieties, raising average productivity. The new insight is that an
expansion in the number of varieties also lowers the volatility … volatility
of growth rates and the level of development is illustrated in Figure 1, which
plots the standard deviation of annual …