We estimate the effects of federal regulation on value added to GDP for a panel of 22 industries in the United States over a period of 35 years (1977–2012). The structure of our linear specification is explicitly derived from the closed-form solutions of a multisector Schumpeterian model of...

I investigate the aggregate effects of R&D tax credits in the US. Because it subsidizes R&D activity and because credit rates vary between states, this policy has both spatial and dynamic effects on the economy. To address this issue, I construct an endogenous growth model with spatial...

In this article, as part of the symposium on total factor productivity, Erwin Diewert of the University of British Columbia provides a comprehensive discussion of what is needed to develop reliable measures of total factor productivity in terms of output and the different classes of inputs. He...

We study Switzerland's 1990s growth weakness through the lens of the business cycle accounting framework by Chari, Kehoe, and McGrattan (2007). Our main result is that weak productivity growth cannot account for the experienced stagnation. Rather, the stagnation is explained by factors that made...

We study Switzerland's weak growth during the 1990s through the lens of the business cycle accounting framework of Chari et al. (Econometrica 75(3):781-836, 2007). Our main result is that weak productivity growth cannot account for the 1993-1996 stagnation episode. Rather, the stagnation is...

We report new regional evidence indicating that U.S. house prices increase persistently in the face of positive shocks to fiscal spending. In sharp contrast with this fact, though, house prices fall in conventional dynamic general equilibrium models where Ricardian households benefit from the...

This paper develops an analytically-tractable general-equilibrium model of inventory dynamics based on a precautionary stockout-avoidance motive. The model's predictions are broadly consistent with the U.S. business cycle and key features of inventory behavior, including (i) a large inventory...

We study Switzerland's weak growth during the 1990s through the lens of the business cycle accounting framework of Chari et al. (Econometrica 75(3):781-836, 2007). Our main result is that weak productivity growth cannot account for the 1993-1996 stagnation episode. Rather, the stagnation is...