This paper develops a fully-endogenous, variety-expansion growth model with firm-specific quality heterogeneity, limit pricing, and an endogenous distribution of markups. Trade induces only firms with high-quality products to export, whereas firms with low-quality products serve only the...

We reassess Mankiw, Romer and Weil's [mrw] version of the Solow model using, as did mrw, cross-sectional data to estimate the steady-state equation governing income per capita levels. The model fails in two critical areas. First, plausible factor shares obtained by mrw are not robust to the...

We develop and estimate the steady-state growth equation of an augmented version of Romer's model of endogenous technical change that allows for population growth, human capital accumulation, diminishing returns to R&D, and technology diffusion. Estimates from international cross-section data...