We study the impact of information and communication technology on growth through its impact on organization and innovation. Agents accumulate knowledge through two activities: innovation (discovering new technologies) and exploitation (learning how to use the current technology). Exploitation...

Why do firms decide to offshore certain parts of their production process? What qualifies certain countries as particularly attractive locations to offshore? In this paper we address these questions with a theory of international production hierarchies in which teams arise endogenously to make...

We propose a theory of firm dynamics in which workers have ideas for new projects that can be sold in a market to existing firms or, at a cost, implemented in new firms: spin-offs. Workers have private information about the quality of their ideas. Because of an adverse selection problem, workers...

We develop a model of an economy where firms with heterogenous demands use labor and knowledge to produce. Managers of firms decide the optimal knowledge of its workers and managers, the number of layers of management, and the span of control of each agent. We use the model to analyze the effect...

What do changes in sectoral/regional productivity look like? How do they aggregate up? In this study we quantify the importance of sectoral and regional propagations of disaggregated changes in productivity. To do so, we use a multi-region, multi-sector model to identify the changes in sectoral...

We use a comprehensive dataset of French manufacturing firms to study their internal organization. We first divide the employees of each firm into layers using occupational characteristics. Layers are hierarchical in that the typical worker in a higher layer earns more, and the typical firm...

We study the impact of regional and sectoral productivity changes on the U.S. economy. To that end, we consider an environment that captures the effects of interregional and intersectoral trade in propagating disaggregated productivity changes at the level of a sector in a given U.S. state to...

Most economic activity occurs in cities. This creates a tension between local increasing returns, implied by the existence of cities, and aggregate constant returns, implied by balanced growth. To address this tension, we develop a theory of economic growth in an urban environment. We show how...

Why do firm growth and exit rates decline with size? What determines the size distribution of firms and plants? This paper addresses these questions in a dynamic model of firm size with entry and exit that emphasizes the accumulation of specific factors in response to industry specific...