Market booms are often followed by dramatic falls. To explain this requires an asymmetry in the underlying shocks. A straightforward model of technological progress generates asymmetries that are also the source of growth cycles. Assuming a representative consumer, we show that the stock market...

In the United States the share of national income accruing to labor has declined rapidly since the 1980s. The decline is mainly in the manufacturing and distribution sectors where both productivity and concentration increased faster than the rest of the economy. In these sectors, the decline of...