How does population aging affect economic growth and factor shares in times of increasingly automatable production processes? The present paper addresses this question in a new macroeconomic model of automation where competitive firms perform tasks to produce output. Tasks require labor and...

This working paper was written by Michael Funke (Hamburg University) and Holger Strulik (Hamburg University).The paper discusses the impact and implications of Korean unification by setting up a two-region endogenous growth model. The numerical solutions are based on the formal analytical model,...

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...

This paper summarizes and extends in several dimensions previous results on the dynamics of two-sector endogenous growth models under the Lucas-Uzawa framework. The analysis provides a methodology to compute the global dynamics for a class of two-sector models with taxes on capital and labor...

We explore the ability of unilateral climate policies to induce innovation and diffusion of technology and its impacts on carbon leakage. We consider both energy-saving and carbon-saving (end-of-pipe) technologies, such as carbon capture and storage. To do so, we combine a computable general...

Decarbonization requires the transformation of power markets towards renewable energies and investment costs are decisive for the deployed technologies. Exogenous cost assumptions cannot fully reflect the underlying dynamics of technological change. We implement divergent learning-bydoing...