During the late 1990s the market value of U.S. businesses grew at 15% per year. It is hard to reconcile such fast growth with observed rates of investment in physical capital and R&D. We therefore propose a model in which new ideas are privately owned but discovering them does not require resources. In our model it is possible that market value rises very rapidly without drastic changes in fact...

We present a growth model in which investment in physical capital shows positive externalities which build up knowledge capital. A prerequisite for these spillovers to take place is that a country devotes time to education. Externalities associated with investment need education to raise the stock of knowledge capital. Analyzing the competitive economy we demonstrate that the model may explain ...

We set up an endogenous growth model with physical capital, human capital and blueprints for intermediate goods. The model can generate steady-state growth or stagnation. Along the adjustment path for a developing economy we can distinguish di!erent stages of development. The "rst stage is characterized by physical factor accumulation. At the second stage the economy follows a growth path which...

Total Factor Productivity (TFP) accounts for a sizable proportion of the income differences across countries. Two challenges remain to researchers aiming to explain these differences: on the one hand, TFP growth is hard to measure empirically; on the other hand, model uncertainty hampers consensus on its key determinants. This paper combines a non-parametric measure of TFP growth with Bayesian ...

Whether or not the marginal product of capital (MPK) differs across countries is a question that keeps coming up in discussions of comparative economic development and patterns of capital flows. Using easily accessible macroeconomic data we find that MPKs are remarkably similar across countries. Hence, there is no prima facie support for the view that international credit frictions play a major...

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This paper studies the evolution of wealth inequality in an economy with endogenous borrowing constraints. In the model economy, agents need to borrow to finance human capital investments but cannot commit to repaying their loans. Creditors can punish defaulters by banishing them permanently from the credit market. In equilibrium, loan default is prevented by imposing a borrowing limit tied to ...

The mechanism and speed of endocytosis at central synapses after neurotransmitter release is still under debate. In this issue of Neuron,Delvendahl et al. (2016) propose an ultrafast form of endocytosis after single action potentials (APs) at physiological temperature.

century, a new era that will be far more scientific, technologic, and sophisticated than anyone would have imagined just a quarter of a century ago. However, the continued success in all areas of pharmaceutical science will depend entirely on how fast pharmaceutical scientists will adapt to rapidly changing technology. Almost 10 years ago, a survey by Shangraw and Demarest revealed a very inter...