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long-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated … inside firms, which lowers the opportunity cost of innovation, generating an additional “trapped factor” effect. Starting …
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, higher rates of innovation and faster employment growth. Second, there is a substantial dispersion of management practices …
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We draw on the monthly Survey of Business Uncertainty (SBU) to make three observations about pandemic-era uncertainty in the U.S. economy. First, equity market traders and executives of nonfinancial firms share similar assessments about uncertainty at one-year lookahead horizons. That is, the...
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