This paper provides evidence that declining allocative efficiency in the R&D sector contributed to the recent slowdown in US productivity growth. I develop a growth accounting framework with rich firm heterogeneity including frictions, which are …
This paper studies how gradualism affects the welfare gains from trade, technology, and reforms.When workers face adjustment frictions, gradual shocks create less adverse distributional effects in the short run. We show that there are welfare gains …
This paper provides evidence that rapid workforce aging has contributed to slow productivity growth in the US over the last two decades, through its impact on innovation. I document that workforce aging in local labor markets leads to a reduction in …
This paper studies the impact of firms' market power over inventors on U.S. innovation and economic growth. When firms have market power in labor markets, a situation typically referred to as monopsony, they can depress wages by hiring fewer workers. …