I construct and analyze a growth model in which technical change can increase unemployment. I first analyze the forces … that deliver a constant steady state unemployment rate in this setting. Labor-saving technical change increases … unemployment, which lowers wages and creates incentives for future investment in labor-using technologies. In the long run, this …

We introduce dynamic incentive contracts into a model of inflation and unemployment dynamics. Our main result is that … wage cyclicality from incentives neither affects the slope of the Phillips curve for prices nor dampens unemployment … dynamics. The impulse response of unemployment in economies with flexible, procyclical incentive pay is first-order equivalent …

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 …

may even reduce welfare. The reason is that it crowds out proprietary innovation which on net may reduce total innovation … in the long run. These effects would be reinforced if philanthropical innovation diverted people from other productive …

We scrutinize Thomas Piketty's (2014) theory concerning the relationship between an economy's long-run growth rate, its … of Piketty's Second Fundamental Law of Capitalism does not hold. In line with Piketty's theory a smaller long-run growth …, both the economy's savings rate and its growth rate are endogenous variables whereas in Piketty's theory they are both …