This paper studies the dynamics of fundamental research. We develop a simple model where researchers allocate their effort between improving existing fields and inventing new ones. A key assumption is that scientists derive utility from recognition from other scientists. We show that the economy can be either in a regime where new fields are constantly invented, and then converges to a steady s...

We embed frictions in the sale of ideas in a relatively standard real business cycle model. Inventors own ideas that they can either inefficiently implement on their own, or implement them efficiently in partnership with firms. However, firms can steal ideas; they are likely to do so if the idea is of sufficiently high quality. Introducing this agency problem in a dynamic general equilibrium mo...

Using a recently developed worker-occupation mismatch measure for the US labor market, we document that mismatch is pro-cyclical. However, there is substantial heterogeneity by previous employment status: mismatch is pro-cyclical for workers in ongoing job relationships and job-tojob transitions, consistent with the cleansing effect of recessions; while mismatch is counter-cyclical for new hire...