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 …

Small and young businesses are essential for job creation, innovation, and economic growth. Even most of the superstar …

decade and estimates their impact on European employment. Using a novel approach that leverages sentence transformers, we … exposure to emerging digital technologies to estimate their employment impact across European regions. We find an overall … positive effect of emerging digital technologies on employment, with a one-standard-deviation increase in regional exposure …

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 …

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

innovation. These include both improvements in physical capital, such as smart grids to aid integration of intermittent … innovation and discuss the lessons learnt for policy. We then discuss the need for complementary innovation in both physical …