In this paper, I examine the transitional dynamics of an economy populated by individuals who split their time between acquiring a formal education, producing final goods, and innovating. The paper has two objectives: (i) uncovering the macroeconomic circumstances that favored the rise of formal...

An algorithm for computing Dynamic Nash Equilibria (DNE) in an extended version of Kiyotaki and Wright (1989) (hereafter KW) is proposed. The algorithm computes the equilibrium profile of (pure) strategies and the evolution of the distribution of three types of assets across three types of...

Attention has increasingly been shifted towards the long-run perspective on technological innovation, which suggests that progress comes in waves, each one originated by a major breakthrough or general purpose technology (GPT). This paper seeks to assess whether nanotechnology is likely to...

I study the growth and welfare e⁄ects of a business tax cut in two economies that di⁄er with respect to rms governance. In one the founders of the rms delegate management; in the other they do not. Growth is driven by the arrival of new rms, and by the accumulation of intangibles. Delegation...