With some models of money and a representative-agent there is no reason for monetary trade because identical individuals can consume their own production. Lucas proposed a parable involving differentiated products in a cash-in-advance model to avoid this problem. This paper studies Lucas?s...

Despite a substantial body of research investigating the market significance of inventions by independent inventors, relatively little attention has been devoted to understanding their technological significance. A recent study conducted by [Dahlin, K., Taylor, M., Fichman, M., 2004. Today's...

We study how the inventive capability of a firm conditions its participation in a division of innovative labor. Capable firms are, by definition, able to invent; for them, external inventions substitute for their own R&D. However, external knowledge is an input into internal invention, and thus,...