I develop a model of monopolistic competition in which I distinguish between niche markets and mass markets, in the spirit of Holmes and Stevens, 2014. Firms choose between entering a small niche market with high markups or a large mass market with low markups. Entry costs and other distortions...

Standard growth models require large differences in barriers to capital accumulation to reproduce the observed disparities in the wealth of nations. I introduce technology adoption and schooling decisions into a standard growth model and show that the required differences in barriers implied by...