Government spending composition, technical change and wage inequality



In our simulations, the steady state was saddle point stable and the Blanchard-Kahn conditions for
the determinacy of the equilibrium were satisfied.

References

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[8] Autor, D., and L. Katz, (1999) “Changes in the Wage Structure and Earnings Inequality”, Hand-
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[9] Berman, E., J. Bound, and Z. Griliches, (1994). “Changes in the Demand for Skilled Labor within
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[10] Card, D., and J. Di Nardo, (2002) “Skill-Biased Technological Change and Rising Wage Inequality:
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[12] Cozzi, G. (2007), "Self-fulfilling prophecies in the quality ladders economy", Journal of Develop-
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