This paper addresses the problem of knowledge and the far-reaching implications it bears upon innovation and the functioning of economic systems. It develops a stylised analysis of the micro-dynamics of knowledge generation, exchange and absorption. It discusses the properties of knowledge...

This paper studies the effects of an (exogenous) increase of nominal wages on profits, output, and growth. Inspired by an article by Michal Kalecki (1991), who concentrated on the effects on total profits, the paper develops a model that explicitly considers the dynamics of demand, prices,...

We study the impact of investment on employment. In the short-run an increase in investment stimulates employment (this is the standard Keynesian multiplier). However increases of investment translate into increases in the capital stock. If labor and capital are substitutes (resp. complements),...