We use novel data from a survey of nearly 750 corporate executives to study the effects of artificial intelligence (AI) on productivity and the workforce. We document substantial heterogeneity in AI adoption across firms, with more than half having already invested, though many smaller firms are...

I study optimal implementation of climate targets in a model with distortionary fiscal policy, learning-by-doing, and directed technical change. The key mechanism is that fiscal constraints link innovation policy to labor allocation, creating a tension between directing research and directing...