Konferenzbeitrag
A Dynamic North-South Model of Demand-Induced Product Cycles
This paper presents a dynamic North-South general equilibrium model with non- homothetic preferences. Innovation takes place in the rich North while firms in the poor South at random imitate products manufactured in the North. The model is able to generate endogenous product cycles as described by Vernon (1966) where the different stages of the product cycle are not only determined by supply side factors but also by the distribution of income between North and South. We simulate comparative statics results of changes in Southern labor productivity, changes in inequality across regions, and changes in the savings rate. We further provide suggestive evidence for the product cycle stages.
- Language
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Englisch
- Bibliographic citation
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Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2012: Neue Wege und Herausforderungen für den Arbeitsmarkt des 21. Jahrhunderts - Session: Innovation and Growth ; No. G13-V3
- Classification
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Wirtschaft
Innovation and Invention: Processes and Incentives
Trade: General
Industrialization; Manufacturing and Service Industries; Choice of Technology
- Event
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Geistige Schöpfung
- (who)
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Föllmi, Reto
Hanslin, Sandra
Kohler, Andreas
- Event
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Veröffentlichung
- (when)
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2012
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Konferenzbeitrag
Associated
- Föllmi, Reto
- Hanslin, Sandra
- Kohler, Andreas
Time of origin
- 2012
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