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This survey reviews the literature on firm dynamics, innovation and growth aiming to better understand the main channels through which innovation affects the performance of modern economies. Since innovations fundamentally diffuse through a complex process of firm and product creation and...
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This chapter discusses the Proceedings of the JRC-IEA Roundtable, which objective was to promote a technical debate on the recent developments of DSGE and alternative modelling strategies, the main mechanisms at play and their effectiveness in assessing the impact of R&D and innovation policies....
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We study the gains from trade in a model with oligopolistic competition, heterogeneous firms and innovation, and provide a formula to decompose the mechanism. The new insight we provide is that market concentration can be a welfare-relevant feature of market power above and beyond markup...
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