Despite the evidence on incomplete financial markets and substantial risk being borne by innovators, current models of growth through creative destruction predominantly model innovators as risk neutral. Risk aversion is expected to reduce the incentive to innovate and we might fear that without...

In this paper general CES consumption preferences are introduced into an endogenous growth model `a la Bernard, Eaton, Jensen, and Kortum (2003) and Eaton and Kortum (2001). This is in contrast to the more generally used assumption of logarithmic preferences. The paper shows that the CES...

We model the diffusion of two types of information through a population under the assumption that communication time is limited. When a meeting between individuals occurs, at most one information can be communicated. Preferences over information types divide the population into two groups, and...