We provide a North-South Schumpeterian growth model endogenously generating demand-driven patterns of vertical intra-industrial trade. More precisely, we build a model featuring non-homothetic preferences and income differences, and show that such conditions guarantee the endogenous emergence of...

This paper systematises the method initiated by Burtless (1999) and provides a general framework for decomposing inequality by factor components. It has the double advantage over usual decomposition procedures to allow for a decomposition of changes in the whole income distribution and to...

In this paper, we provide a general model discussing the impact of non-homothetic preferences on the vertical comparative advantage of countries, i.e. the existence of demand-based determinants of the quality content of production and exports. We show that while average income positively impacts...