(Un)anticipated Technological Change in anEndogenous Growth Model

This paper examines numerically the impact of a negative exogenousshock to marginal productivity (such as ecological government regulationthat becomes eective at some point in time) in an endogenousnite time growth model with sluggish reallocation of human capital.The policy can be anticipated or unanticipated by the economicagents, and it can also be announced but not implemented. It turnsout that these frictions have very strong long-run eects on consumptionand output, and on the optimal allocation of capital and laborin particular. The qualitative properties are closely related to thosefound in homogenous labor models with positive productivity shocks.[...]