Most economic theory on long-run growth is organized around the concept of balanced growth. On a balanced growth path, all economic variables grow at constant but possibly different rates. The concept of balanced growth paths is usually motivated by the "stylized facts" of growth, which state...

Empirical evidence sheds light on the process through which use of new technologies becomes spread, or diffused, throughout the economy. Such evidence can disclose, for example, whether the diffusion of a revolutionary new technology like that embodied in modern computers can account for the...

We find disparate trend variation in TFP and labor growth across major U.S. production sectors over the post-WWII period. When aggregated, these sector-specific trends imply secular declines in the growth rate of aggregate labor and TFP. We embed this sectoral trend variation into a dynamic...