We construct a tractable general equilibrium model of cumulative innovation and growth, in which new ideas strictly … the rate of innovation, as well as a separate optimal required inventive step that maximizes welfare, with the former …

This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth … equilibria are inefficient. The inefficiency is exacerbated if selfish individuals externalize the positive effect of education … on descendents’ productivity. It is shown to be second best to subsidize education even relative to the first best if the …

, we observe interesting patterns in the skill composition, employment opportunities and wages for migrants to the …

Keeping up with rapid technological change necessitates constant innovation. Successful innovation depends on both … implement them. Both of these knowledge-based elements of innovation can be attained through moderate labor force turnover in … innovation within a multivariate regression framework. However, when instrumenting training by the existence of a union …