In this paper we explore the claim that spatial interactions among cities are significant drivers of their growth. We assert that reallocation of ideas among cities is a source of improved allocation of resources. Following Broitman et al (2020), we propose a closed economy, agent-based model...

Different goods are produced by different sectors in an economy. The fact that sectors use different production technologies is named technology-bias. The technology-bias is well documented and has important theoretical implications for economic growth and unemployment. We provide a theoretical...

This paper studies product obsolescence, the entry and exit of firms, and the evolution of firm size as foundation of endogenous economic growth. I develop a dynamic general equilibrium model with heterogenous firms to analyze firm behavior in an economic environment that is characterized by a...

The paper looks at a model of directed technical change in an environmental-economics context. Firms can do conventional or green R&D or they can abate emissions at the end of pipe. The paper has two main foci. On the one hand, it investigates the impact of environmental regulation on the...