Aggregate Implications of Innovation Policy
---- Acknowledgements ----
This is a substantially revised version of a previous draft with the same title, NBER Working Paper 17493 and Minneapolis Fed Staff Report 459. We thank Liyan Shi for research assistance, and Ufuk Akcigit, Costas Arkolakis, Arnaud Costinot, Chad Jones, Pete Klenow, Rasmus Lentz, Ellen McGrattan, Juan Pablo Nicolini, Pedro Teles, Aleh Tsyvinski and Ivan Werning for very useful comments. We thank the National Science Foundation (Award Number 0961992) for research support. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis, the Federal Reserve System, or the National Bureau of Economic Research.