This studyendorses a model of endogenous growththat combines the work of researchers—producing inventions—and the work ofentrepreneurs—implementing them. An innovation requires the matching of anentrepreneur with a successful invention. Individuals face the choice ofwhether to become...

This paper proposes a model of endogenous growth where innovating requires both researchers, who produce inventions, and entrepreneurs who implement them. As research and entrepreneurship compete in the allocation of aggregate resources, the relation between growth and research effort is...

We consider a competitive search model where firms with vacancies choose between posting a wage ex ante and bargaining it with workers ex post. Workers apply for vacancies after observing firms' wage setting decisions, and dffer in some observable but not verifiable qualifications that affect...

Unit roots in output, an exponential 2% rate of convergence and no change in the underlying dynamics of output seem to be three stylized facts that cannot go together. This paper extends the Solow-Swan growth model allowing for cross-sectional heterogeneity. In this framework, aggregate shocks...

We rely on the Survey of Consumer Finances to study the return to education of US entrepreneurs since the late 1980s. We calculate the average yearly income that an entrepreneur expects to obtain during his venture, combining labor income, dividend payments, and capital gains upon selling the...

We set-up a real business cycle model with search and matching frictions driven by several shocks, which nests full Nash Bargaining and wage rigidity as special cases and includes other transmission mechanisms suggested by the literature for the propagation and amplification of disturbances. The...