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 domestic...

This study provides a unied growth theory to correctly predictthe initially negative and subsequently positive relationship between child mortalityand net reproduction observed in industrialized countries over the courseof their demographic transitions. The model captures the intricate...