-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 from a baseline …

This paper has two purposes. It introduces a direct approach to policy analysis in endogenous growth models - the q-theory …

stage pharmaceutical innovation? We explore this question using novel data sources and an empirical framework that models … research activity within therapeutic markets. A 10% increase in generic penetration is associated with a 7.9% decline in all … implications of our results for long-run welfare, policy, and innovation …

We explore the determinants of research specialization across countries and its consequences for relative wages. Using … research regardless of trade barriers or research productivity. As long as trade barriers are not too high, faster diffusion … shifts research activity toward the country that does it better. This shift in research activity raises the relative wage …