Good Rents versus Bad Rents: R&D Misallocation and Growth

We thank Nicolas Crouzet, Maarten De Ridder, Yifan Zhu, and participants at the Conference in Memory of the work of Emmanuel Farhi, the NBER Summer Institute Macroeconomics and Productivity workshop, and the NBER EFG meeting for their helpful comments. The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of San Francisco, the Board of Governors of the Federal Reserve System, or the National Bureau of Economic Research. This work is supported by a public grant overseen by the French National Research Agency (ANR) as part of the “Investissements d’Avenir” program (reference: ANR-10-EQPX-17 – Centre d’accès securisé aux données – CASD), and has received funding from the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation programme (grant agreement No 786587). Philippe Aghion also acknowledges the support of EUR grant ANR-17-EURE-0001. Timo Boppart acknowledges the support of SNSF consolidator grant TMCG-1 223114. Erin Crust provided excellent research assistance.

• data appendix