Trade Specialization, Endogenous Innovation and Growth

Labor Specialization and Endogenous Growth

Financial Innovation and Endogenous Growth

Is financial innovation necessary for sustaining economic growth? To address this question, we build a Schumpeterian model in which entrepreneurs earn profits by inventing better goods and profit-maximizing financiers arise to screen entrepreneurs. The model has two novel features. First, financiers engage in the costly but potentially profitable process of innovation: they can invent better me...

Liquidity, Innovation, and Endogenous Growth∗

We study optimal liquidity management, innovation, and production decisions for a continuum of firms facing financing frictions and the threat of creative destruction. We show that while financing frictions prompt firms to decrease production, they may also spur investment in innovation. We examine which types of firms substitute production for innovation in response to negative operating shock...

FOSteRING PRODUCtIVItY GROWtH tHROUGH INNOVAtION AND tRADe

A mericans have always believed in building a better future. each generation has strived to pass on higher standards of living to their children than they themselves experienced. And for most of American history, this goal has been realized. Per capita income has risen strongly for most of the past two centuries. Such economic growth stems from a number of factors. Investment in skills and educ...

Fostering Productivity Growth through Innovation and Trade

A mericans have always believed in building a better future. Each generation has strived to pass on higher standards of living to their children than they themselves experienced. And for most of American history, this goal has been realized. Per capita income has risen strongly for most of the past two centuries. Such economic growth stems from a number of factors. Investment in skills and educ...