The Internet plays a growing role in the economy. This paper extrapolates this trend and analyses a world where most transactions take place in "cyberspace". We ask the following question: how does the design of the search engine affect the incentives to innovate and the economy’s long run...

In this paper, we present international comparisons of potential output growth among several economies Canada, the euro area, France, Germany, Italy, Japan, the Netherlands, the United Kingdom, and the United States for the period 1991-2004. The main estimates rely on a structural approach where...

This paper evaluates the consequences of accelerated technical progress for monetary transmission and the speed of adjustment in the real economy. With a decreasing service life, the long term rate relevant to real demand will resemble more closely the money market rate. We make the investment...