During the last twenty years the share of researchers in the workforce has been rising in OECD countries. The consistency of this pattern suggests that it is not a transitional phenomenon. This paper demonstrates that the rise of research can occur in the steady state when schooling inequality...

In this paper idiosyncratic uncertainty is introduced in a model of economic growth with an increasing variety of intermediate products. Both the costs of producing intermediate products and their quality are uncertain for all producers at all times. Using the property of the model that the...