[Title Page]
Copyright
Contents
[Abstract] 5
I. Introduction 6
II. Overview 10
1. The Trend in the Wage-Inequality 10
2. The Canonical Model of SBTC 11
3. The Evolution of Product Variety 13
III. Model 16
1. Consumption 17
2. Production 19
3. Occupational Choice and Supply of Skill 26
4. Competitive Equilibrium 28
4.1. Aggregation: Market Clearing Conditions 29
4.2. The Number of Products in Equilibrium 32
4.3. The Effect of Capital Stock on Product Variety 34
4.4. Capital Accumulation 38
5. The Effects of Exogenous Shocks 41
5.1. The Effect of a Shock in Fixed Capital Costs 42
5.2. Taste Shock 46
5.3. Skill Supply Shock 49
6. Matching Empirical Patterns 52
IV. Conclusion 54
References 56
Appendix 60
Appendix A. Empirical evidences 60
Appendix B. About Mark-up Ratio Data 67
Abstract in Korean 71
[Back Cover] 83