using a novel plant-level dataset from Taiwan (1992-2004), that new product introductions are a key contributor to increases in plant-level factor productivity. We then formulate and calibrate a span-of-control model of product choice and firm dynamics in which new products embody the frontier...

A pervasive prediction of business cycle models is that investment by firms in durable goods (capital, inventories) is highly sensitive to fluctuations in real interest rates (Thomas 2002, House 2007, Kryvtsov and Midrigan 2008). This prediction stands in sharp contrast with the data: investment...

This paper studies how shocks to the value of human capital can cause unemployment.

and strong reputation concerns.

We present a general equilibrium model of the decisions of firms to innovate and to engage in international trade. We use the model to study the changes in aggregate productivity that arise as firms' exit, export, process- and product innovation decisions respond to a change in the marginal cost...