Gunn, Christopher; Johri, Alok - In: Review of Economic Dynamics 14 (2011) 1, pp. 92-101
We show that a model with knowledge capital can generate business cycles driven by expectations of future movement in …-worked all rise in advance of any movement in TFP. We model knowledge capital as an input into production which is endogenously … knowledge capital rises, inducing the firm to hire more hours to "invest" in knowledge capital. The rise in the value of …