We develop an endogenous growth model with heterogeneous firms facing financial frictions, where misallocation emerges … explicitly as a crucial endogenous state variable and plays a significant role in driving economic growth through the valuation … aggregate growth. In equilibrium, slow-moving misallocation endogenously generates long-run uncertainty about economic growth by …

abundant. Automating productivity growth may lead to broad-based gains in the returns to all factors. By contrast, bottlenecks … to growth from irreproducible scarce factors may exacerbate the decline in wages …

economy with uneven productivity growth, income effects, and consumption complementarity across sectoral outputs. During early …

To fill the knowledge gap that previous studies ignore either housing or internal urban structure and to enable better … fit with important stylized facts, we construct a two-sector optimal growth model of housing where housing is produced by … housing and housing and land prices. The model is then calibrated to fit part of the stylized facts: faster growth of housing …

Transformative technologies like generative artificial intelligence promise to accelerate productivity growth across …, a higher growth rate leads to slower optimal adoption. Equilibrium adoption is inefficient when firms do not internalize …

per worker. In many models of firm dynamics, trade, and growth with a free entry condition, these facts imply that the … costs of creating a new firm increase sharply with productivity growth. This increase in entry costs can stem from the … rising cost of labor used in entry and weak or negative knowledge spillovers from prior entry. How entry costs vary with …