Taste for variety: Model of Grossman and Helpman.
Taste for variety: Model of Grossman and Helpman.
Taste for variety: Model of Grossman and Helpman.
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Variety expansionEquilibriumGrowth rateWith these notions the growth rate <strong>of</strong> the world economy may bedescribed asg = ∑ in˙i /n = H − β e σ − 1 − β se, (36)αwhere:H = ∑ L i /a Lni - total effective labour <strong>for</strong>ce;is = ∑ s i /b i - product shares; σ = ∑ σ i b i - weighted average <strong>of</strong>iicomparative advantages.
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