We develop a microeconomic model of endogenous growth where clean and dirty technologies compete in production and innovation– in the sense that research can be directed to either clean or dirty technologies. If dirty technologies are more advanced to start with, the potential transition to clean technology can be diffi cult both because clean research must climb several rungs to catch up with ...

We develop a microeconomic model of endogenous growth where clean and dirty technologies compete in production and innovation– in the sense that research can be directed to either clean or dirty technologies. If dirty technologies are more advanced to start with, the potential transition to clean technology can be diffi cult both because clean research must climb several rungs to catch up with ...

We examine the interaction between risk (uncertainty) and production efficiency in determining pay-performance sensitivity in optimal executive compensation. Particularly, we show that the risk-incentive trade-off is exacerbated (attenuated) as production efficiency increases when the efficiency level is greater (less) than the level of compensation risk. This result suggests that the optimalit...

An important element of the cost of distance is time taken in delivering final and intermediate goods. We argue that time costs are qualitatively different from direct monetary costs such as freight charges. The difference arises because of uncertainty. Unsynchronised deliveries can disrupt production, and delivery time can force producers to order components before demand and cost uncertaintie...

Labor Supply, Home Production and Welfare Comparisons We consider the collective model of labor supply with marketable domestic production. We first show that, if domestic production is mistakenly ignored, the “collective” indirect utilities that are retrieved from observed behavior will be unbiased if and only if the profit function is additive. Otherwise, in the non-additive case, the directi...

In this paper we examine whether nonlinearities in the aggregate production function can explain parameter heterogeneity in the Solow (1956) growth regressions. Nonlinearities in the production technology are introduced by replacing the linear Cobb-Douglas specification with the more general CES specification. We justify our choice of production function by showing that in the context of cross-...

We compare the findings of central bank researchers and academic economists regarding macroeconomic effects quantitative easing (QE). find that papers QE to be more effective than do. Central report larger on output inflation. They also are significant, both statistically economically, they use positive language in abstract. who experience favorable career outcomes. A survey banks reveals subst...

This paper incorporates Northern product innovation and product-cycle-driven technology transfer into the continuum-of-goods Heckscher-Ohlin model. The creation of very skill-intensive goods induces the North to transfer production of older, less skill-intensive goods to the South. These relocated goods must be the most skill intensive by Southern standards. Thus, product cycles raise the relat...

For what kind of intermediate input/service do firms often go outsourcing? This paper develops a model of two-stage production in which economies of scope are central to the production of both the intermediate and final good. The model is able to explain the patterns of outsourcing from the degree of product differentiation, economies of scope, and economies of scale in production of the interm...

In a sample of Tanzanian formal sector workers the vast majority have a desire for working longer hours in their main job, and supplement earnings through participation in informal production. Determinants of participation in informal production are examined through estimation of structural-form Logit models. A new way around the problem of measuring incomes from informal production is suggeste...