This paper represents a first attempt at a tractable analysis of how monetary policy influences the income distribution in an economy. It presents a monetary growth model in which inflation affects credit market efficiency, and via this link, influences capital accumulation, and the income...

In the recent decade, capital outows from emerging economies, in the form of a demandfor liquid assets, have played a key role in the context of global imbalances. In this paper,we model the demand for liquid assets by rms in a dynamic open-economy macroeconomicmodel. We nd that the implications...

In this paper we show that vocational training is an important determinant of productivitygrowth. We construct a multi-country, multi-sectoral dataset, and quantify empirically to whatextent vocational training has contributed to increase the growth rate of labor productivity inEurope between...

By assuming Cobb-Douglas production technology, many well-known imperfectlycompetitive macroeconomic models of the labour market (e.g. Layard, Nickell andJackman, 1991) imply that equilibrium unemployment is independent of the capitalstock. This paper introduces a new notion of capacity into the...

The paper presents a monetary policy model with an endogenous capital stock when a backwardlooking element in wage setting causes inflation persistence. We analyse how the endogeneityof the capital stock changes the macroeconomic dynamics with which policy interacts and itsimplications for...

Estimates of the marginal product of capital can help forecast economic growth, test competing businesscycle theories, and perform cost-benefit analysis. This paper presents annual and quarterly estimatesof the marginal product of capital in the U.S. separately for the residential and...

Using a ¯rm-level panel data set I assess whether dynamic models of in-vestment provide an empirically fruitful framework for analyzing tax e®ectson changes in capital stock. In particular I estimate a one-step error correc-tion model (ECM) complementing the usual estimation of a distributed...

In a neoclassical economy with endogenous capital- and labor-augmentingtechnical change the steady-state growth rate of output per worker is shown to increasein the elasticity of substitution between capital and labor. This conrms theassessment of Klump and de La Grandville (2000) that the...

We look at disaggregated imports of various types of equipment to make inferences oncross-country differences in the composition of equipment investment. We make threecontributions. First, we document strikingly large differences in investment composition.Second, we explain the differences as...