homogeneous firm model that is a special case of a heterogeneous firm model with a degenerate productivity distribution. Keeping … all structural parameters besides the productivity distribution the same, we show that the two models have different … quantitatively important (up to a few percentage points of GDP). Under the assumption of a Pareto productivity distribution, the two …

markets. This approach explains a variety of features exhibited in disaggregated trade data, including the higher productivity … industry and firm productivity. …

technology distribution. By shifting the productivity distribution upwards, selection on productivity causes technology diffusion … and this complementarity generates endogenous growth without scale effects. On the balanced growth path, the productivity …

productivity of firms. However, there is less consensus about the underlying mechanism at work. While trade papers focus on access … leads to productivity increases, but only for firms that were already highly productive before. The evidence on import … competition is weaker. If anything, initially low-tech firms manage to increase their productivity in response to increased …