We supplement the ‘Idea Production Function’ (IPF) with measures of R&D capital. We construct the R&D capital stock in the US, and estimate the IPF with patent applications as R&D output, allowing for a flexible treatment of R&D productivity (over 1968-2019). The estimated substitution...

We contribute a new method for dealing with the problem of endogeneity of the threshold variable in threshold vector auto-regression (TVAR) models. Drawing on copula theory, enables us to capture the dependence structure between the threshold variable and the vector of TVAR innovations,...

We derive a very general ("Janus") money demand function, which reflects backward and forward-looking habit formation. This generality offers an explanation for the breakdown of money-demand functions and policy relevance of monetary aggregates. Integrating our Janus money demand into a...