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R. Dornbusch, S. Fischer and P. A. Samuelson, “Comparative Advantage, Trade, and Payments In a Ricardian Model with a Continuum of Goods,” American Economic Review, Vol. 67, No. 5, 1977, pp. 823-839.

has been cited by the following article:

• TITLE: Technology Intensity and the World Distribution of Income

  AUTHORS: Chu-Ping Lo, Guang-Jong Fann

  KEYWORDS: Innovation; Technology Transfer; Technology Intensity; Relative Wage

  JOURNAL NAME: Theoretical Economics Letters, Vol.2 No.2, May 24, 2012

  ABSTRACT: This paper presents a simple model of monopolistic competition in a North-South world. The North introduces new goods that the South takes over when the goods become old. The new goods are more technology-intensive than the old goods because innovation requires more efforts than imitation. In the literature, the world distribution of income favors the country that produces a greater range of variety. However, in this model, the South’s catching up in terms of the range of variety is not a threat to the North’s status quo. It is the difference in technology intensity that determines their relative wage.