Endogeneity in network formation hinders the identification of the role that social networks play in generating spillovers, peer effects and other externalities. This paper tackles this problem and investigates…
Recently Acemolgu, Aghion, Bursztyn and Hemous (AER 2012) formulated a model in which a high macroeconomic elasticity of substitution between clean and dirty production represents a crucial condition for green…
Knowledge creation is a key driver of growth in modern economies. The creation of knowledge is often comparable to the accumulation of tangible capital: In the current period, investments are made in order to…