An influential hypothesis explaining the persistence of global productivity differences is that frontier technologies are finely tuned to the local conditions of the high-income countries that develop them and inappropriate for application elsewhere. This paper studies how environmental...

This paper studies how innovation reacts to climate change and shapes its economic impacts, focusing on US agriculture. We show in a model that directed innovation can either mitigate or exacerbate climate change's economic damage depending on whether new technology is on average a substitute...