Greg Kaplan is a Assistant Professor of Economics at Princeton University. His research interests are in applied macroeconomics. Guido Menzio is Associate Professor of Economics at the University of Pennsylvania. His focus is on macroeconomic applications of search theory

A stepping stone arises in risky environments with learning and transferrable human capital. An example is the role played by academic two-year colleges in post-secondary education: Students, as they learn about the uncertain educational outcomes, can drop out or transfer up to harder and more...

Intangible capital is an important factor of production in modern economies that is generally neglected in business cycle analyses. We demonstrate that intangible capital can have a substantial impact on business cycle dynamics, especially if the intangible is complementary with production...