This paper introduces endogenous technical change through basic and applied research in a growth model. Basic research differs from applied research in two significant ways. First, significant advances in technological knowledge come through basic research rather than applied research. Second,...

The last three recessions in the United States were followed by jobless recoveries: while labor productivity recovered, unemployment remained high. In this paper we propose and quantitatively evaluate a new explanation for this fact, namely that extensions of unemployment benefits in recessions...

Bankruptcy laws govern consumer default on unsecured credit. Foreclosure laws regulate default on secured mortgage debt. In this paper I use a structural model to argue that bankruptcy and foreclosure are inter-related. This interaction is important for understanding the cross-state variation in...