Empirical evidence suggests that recessions have long-run effects on the economy's productive capacity. Recent literature embeds endogenous growth mechanisms within business cycle models to account for these "scarring" effects. The optimal conduct of monetary policy in these settings, however,...

This paper studies monetary policy strategies under endogenous technology dynamics and low r∗. Endogenous growth strengthens the gains from make-up strategies relative to inflation targeting, especially if policy space is reduced. This result is due to the long-run non-neutrality of money and...

We analyze the effects of the economic - driven migration of labor and capital on economic growth . To this aim , we develop a new model of the Solow type that fully accounts for the spatial dependence of the flows of workers and investments on salaries and returns . Considering a rather general...

We analyze the ups and downs in economic growth in recent decades by constructing a model with recurrent bubbles, crashes, and endogenous growth. Once realized, bubbles crowd in investment and stimulate economic growth, but expectation about future bubbles crowds out investment and reduces...

This study considers a three-period overlapping generations model with an endogenous growth setting in which an agent borrows a loan in the first period and repays it in the second period in a perfect credit market. Two educational subsidy schemes are considered: one is provided when an agent...

In this paper, we build a growth model using a new type of data for knowledge accumulation. This type of data can be viewed as a byproduct during the production process, therefore illustrating a new source of data supply, i.e., producer data. Labor will be employed for collecting and cleaning...

Abating emissions of carbon dioxide depends in part on how quickly the levelized cost of electricity (LCOE) from photovoltaic cells (PV) achieves grid parity without policy interventions. Reaching this threshold is accelerated by learning by doing, which reduces the LCOE generated by PV and...

Standard New Keynesian (NK) models feature an optimal inflation target well below two percent, limited welfare losses from business cycle fluctuations and long-term monetary neutrality. We develop a NK framework with labour market frictions, endogenous productivity and downward wage rigidity...

In this paper, we review the literature on declining business dynamism and its implications in the United States and propose a unifying theory to analyze the symptoms and the potential causes of this decline. We first highlight 10 pronounced stylized facts related to declining business dynamism...

traditionally seen only in terms of trade costs, many aspects of economic integration are more naturally viewed as lowering the cost of trading information rather than goods, i.e. as reducing the extent to which learning externalities are localised. Raising learning spillovers is stabilising, so...