competitors. Because workers participate in the returns on investment while only firms bear the costs, investment is inefficiently … low. A binding minimum wage can achieve the first-best level of investment, both in the short run for a given number of …

investment in skill-intensive technologies. A public education system funded by graduate taxes can restore efficiency. More …

stochastic shocks imply that investment in radical innovation may very often be too time consuming and/or expensive to remain …

an alternative way to model whether firms export or not, namely as a firm-level decision akin to an investment decision …