This paper develops an endogenous growth model with quality ladders where consumers heterogeneity is assumed and is modelled through non homothetic preferences. We show that in such a model, unlike mainstream quality ladders models, the steady state equilibrium is characterised by a duopoly were...

This paper tests a strand of Schumpeterian growth theory that predicts a role for income inequality as a determinant of technology-enhancing activities, in the shape of innovation in the North and of technology transfers in the South. The analysis is conducted at three different levels: by world...