Empirical studies analyzing the effect of climate change on output growth sometimes neglect economic variables. This yields a biased picture of the growth process and does not represent a good approximation of the true data generating process. Thus, the question arises how valid the results are...

In this paper we analyze an inter-temporal optimization problem of a representative firm that invests in horizontal and vertical innovations and that faces a constraint with respect to total R&D spending. We find that there can exist two different steady-states of the economy when the amount of...

This paper combines horizontal and vertical innovations to generate an endogenous growth model allowing for structural change as an endogenous phenomenon. Every industry is profitable only for a limited period of time, making the effective time of existence of the technology endogenous and...