Manufacturing productivity growth recovered during the 1980s and 1990s, while other sectors, particularly services, did not. In the same period U.S. manufacturing has engaged in the "outsourcing" or "contracting-out" of service functions. Has the recovery of manufacturing been accomplished by...

Where is the productivity growth from the IT revolution? Why did the skill premium rise sharply in the early eighties? Were these phenomena related? This paper examines these questions in a general equilibrium model of growth. Technological progress in firms is driven by research aimed at...

Debreu s coefficient of resource utilization is freed from individual data requirements.The procedure is shown to be equivalent to the imposition of Leontief preferences.The rate of growth of the modified Debreu coefficient and the Solow residual are shown to add up to TFP growth.This...

In this paper an experimental environment to test theoretical predictions concerning R&D behavior of firms in duopoly with allowance for R&D spillovers is created. The design and hypotheses of the experiment are based on the well-known model of d Aspremont and Jacquemin in which R&D behavior of...

Employed technologies differ vastly across countries. Within countries many technologies that would obviously improve firms’ efficiency are not adopted. This paper explains these observations by emphasizing that a new technology positively affects workers by lowering prices and increasing...