A lab-equipment model of growth with heterogeneous firms and asymmetric countries

摘要

By extending the Rivera-Batiz-Romer lab-equipment model of growth with expanding input varieties to include both heterogeneous firms and asymmetric countries, we show that even unilateral trade liberalization always raises both countries' long-run growth and welfare. (C) 2019 The Author. Published by Elsevier B.V.