This paper develops an endogenous growth model that incorporates a frictional inventor market and examines the allocation of inventors across firms, knowledge diffusion, and its impact on growth. In our model, inventors play dual roles: they engage in in-house R&D and transfer knowledge from...

This paper develops an endogenous growth model that incorporates a frictional inventor market and examines the allocation of inventors across firms, knowledge diffusion, and its impact on growth. In our model, inventors play dual roles: they engage in in-house R&D and transfer knowledge from...

Recent empirical studies have reported a widening gap between firms regarding sales and profits and the emergence of superstar firms with very high productivity. Our study focuses on knowledge flow to explain the rise of them. Previous research frameworks assumed that knowledge is transferred...

We examine how the rise of leading companies of this age affects real interest rates. We define “superstar firms” as firms with higher productivity growth and less investment relative to their value-added, and we construct analytic and quantitative overlapping generations models in which...

We show how to recover the money-metric utility function, which converts income at one point in time into equivalent income at another point in time, using repeated cross-sectional household data. Our procedure allows unrestricted preferences, but requires that households' preferences be the...