A small literature on General Purpose Technology has emerged in recent years. It has studied a number of channels through which a new technology affects the economy, such as secondary innovations and diffusion. Our goal is to examine new channels of adjustment that operate through labor markets....

We develop an equilibrium model of industrial structure in which the organization of firms is endogenous. Differentiated consumer products can be produced either by vertically integrated firms or by pairs of specialized companies. Production of each variety of consumer good requires a unique,...

It is apparent from the reported estimates that R&D is an important activity that has a major impact on the performing countries as well as on their trade partners. We may not yet have precise estimates of these impacts, both because of difficulties with available data and because of some...

In most elections the leaders of organizaed interest groups publicly announce their support for one candidate or slate of candidates or another. Why are there political endorsements made? and what role do they play in the election process and in the determination of policy? We see public...

We develop a model of common agency with complete information and general preferences with non-transferable utility, and prove that the principals'Nash equilibrium in truthful strategies implements an efficient action. We apply this theory to construct a positive model of public finance, where...

We examine the growth promoting roles of R&D, international R&D spillovers, and trade in a world econometric model.

We study the politics of intergenerational redistribution in an overlapping-generations model with short-lived governements. The successive governements -who care about the welfare of the currently living generations and possibly about campaign contributions- are unable to pre-commit the future...