We study the introduction of a wealth-management robo-adviser that constructs portfolios
tailored to investors' holdings and preferences. Adopters are similar to non-adopters in terms …

Page 1 AEI STUDIES ON UNDERSTANDING ECONOMIC INEQUALITY THE THIRD
INDUSTRIAL REVOLUTION TECHNOLOGY, PRODUCTIVITY, AND INCOME INEQUALITY …

Was 1974 a watershed? It saw an increase in the rate of technological change in the
production of new equipment. It was the start of a sharp rise in income inequality. It signaled …

We show how a Schumpeterian process of creative destruction can induce rational, herd
behavior by entrepreneurs across diverse sectors as if fueled by “animal spirits.” …

Research on the diffusion of technologies that give competitive advantage is needed to
understand the role of technology in competition. Predictions on which firms first obtain …

This study investigates product, process, and management innovation among a sample of
Spanish manufacturing small and medium‐sized enterprises (SMEs) during the current …

The real-business-cycle literature has largely ignored the empirical question of what role
technology shocks actually play in business cycles. The observed procyclicality of total factor …

The story of technological progress is the invention and subsequent implementation of
improved methods of production. All models of growth incorporate this notion in some way …

In this paper, we build a dynamic model with endogenous firm-level productivity that
involves ex ante identical firms behaving differently in equilibrium. Heterogeneity arises in …

Many new technologies display long adoption lags, and this is often interpreted as evidence
of frictions inconsistent with the standard neoclassical model. We study the diffusion of the …