We analyze the effects of trade under relocations from an innovator to a follower region in a context with region-specific monetary policy and long-run inflation. We propose an endogenous growth model with intermediate goods of different skill intensities that are traded internationally. We show...

Over the past decades, research effort in high income countries has substantially increased. Meanwhile, the growth rates of per capita output have been rather stable. The first goal of this paper is to investigate the reasons for such trends. The second goal of the paper is to show that the...

We look at how advances in AI and Robotics will affect employment in an economy with matching frictions and endogenous job destruction. In the model, tasks can be produced by workers or by machines. Workers have a comparative advantage in producing advanced tasks but machines tend to catch up...