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I study the allocation of human capital in an economy with production externalities, financial constraints and career … choices. Agents choose to become entrepreneurs, workers or financiers. Entrepreneurship has positive externalities, but …
Persistent link: https://www.econbiz.de/10012465087
Traditional economic analysis has proposed well known remedies to deal with consumption externalities and inefficient … of R&D and consumption externalities is central to health care industries around the world generally, and for the … problems in isolation are inefficient -- Pigouvian corrections to consumption externalities are inefficient under technological …
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This paper presents a model in which a partially anticipated technological shock results, in the short-run, in lower investment and higher unemployment. Because of the expectation of future lower profits, the market value of existing firms --and the wages they pay-- decrease before the...
Persistent link: https://www.econbiz.de/10012470709
Arguably the most important development in recent decades in US factor markets is the decline in the relative wage of the unskilled. By contrast, in Europe it is undoubtedly the rise and persistence of unemployment. Technology has been identified as a key reason for the rising US wage...
Persistent link: https://www.econbiz.de/10012473209
This essay discusses the effect of technical change on wage inequality. I argue that the behavior of wages and returns to schooling indicates that technical change has been skill-biased during the past sixty years. Furthermore, the recent increase in inequality is most likely due to an...
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