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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[2] Acemoglu D. (2002b). “Directed Technical Change”, Review of Economic Studies.

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[4] Aghion P., and P. Howitt (1992). “A Model of Growth through Creative Destruction”, Econo-
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[5] Aghion, P., P. Howitt, and G. Violante. (2002). “General Purpose Technology and Wage Inequal-
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[7] Aghion, P., and P. Howitt, (2005) “Growth with Quality-Improving Innovations: An Integrated
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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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[11] Caselli, F. (1999). “Technological Revolutions,” American Economic Review, 89, 1, 78-102.

[12] Cozzi, G. (2007), "Self-fulfilling prophecies in the quality ladders economy", Journal of Develop-
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[13] Cozzi, G. (2008), "Can social norms affect the international allocation of innovation?", Working
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[14] Cozzi, G, and G. Impullitti, (2008). “Fiscal policy, Heterogeneous Industries, and Long-run
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25



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