By merging individual data on valuable patents granted in Prussia in the late nineteenth century with county level information on literacy and income tax revenues we show that increases in the stock of human capital not only improved workers ́productivity but also accelerated innovative...

In this paper we explore the claim that spatial interactions among cities are significant drivers of their growth. We assert that reallocation of ideas among cities is a source of improved allocation of resources. Following Broitman et al (2020), we propose a closed economy, agent-based model...