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on Business Economics |
| By: | Francis Bloch (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X); Simona Fabrizi (Massey University - SIERC); Steffen Lippert (University of Otago - Department of Economics) |
| Abstract: | This paper analyzes an entry timing game with uncertain entry costs. Two firms receive costless signals about the cost of a new project and decide when to invest. We characterize the equilibrium of the investment timing game with private and public signals. We show that competition leads the two firms to invest too early and analyze collusion schemes whereby one firm prevents the other firm from entering the market. We show that, in the efficient collusion scheme, the active firm must transfer a large part of the surplus to the inactive firm in order to limit preemption. |
| Keywords: | Learning; Preemption; Innovation; New Markets; Project Selection; Entry Costs; Collusion; Private Information; Market Uncertainty |
| Date: | 2011–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00639049&r=bec |
| By: | Roberto Dopeso Fernandez |
| Abstract: | This paper analyzes to what extent marshallian agglomeration economies affect the creation of new entrepreneurial ventures at the metropolitan level. The measuring of agglomeration economies is based on the construction of indexes using the methodology of Glaeser and Kerr (2009). The indexes attempt to capture the effects of resource sharing, labor matching and knowledge spillovers according to the taxonomy proposed by Marshall (1920). Also an index to measure the influence of small suppliers to attract new business ventures, following Chinitz (1961), is constructed. Data on new firms and employment generated is accounted for the period 2000-2008. The analysis is based on the activity of the 15 largest metropolitan areas in Spain. Sixty two-digit industries (CNAE-93) are considered. The results show that jobs created by entrepreneurs are highly influenced by the ability to share suppliers and customers. Firm creation is influenced by those factors as well as the presence of small suppliers and the proximity to innovative activity. Agglomeration indexes with sector and city fixed effects explain more than 90% of new entry and employment generated. The potential multicollinearity among indexes is tested using principal component analysis. This analysis shows some complementarities among the indexes. New regressions using the factorized terms show that traditional measures of localization economies hide specific information about the process of agglomeration. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1771&r=bec |
| By: | Martin Bodenstein; Luca Guerrieri |
| Abstract: | The macroeconomic implications of oil price fluctuations vary according to their sources. Our estimated two-country DSGE model distinguishes between country-specific oil supply shocks, various domestic and foreign activity shocks, and oil efficiency shocks. Changes in foreign oil efficiency, modeled as factor-augmenting technology, were the key driver of fluctuations in oil prices between 1984 and 2008, but have modest effects on U.S. activity. A pickup in foreign activity played an important role in the 2003-2008 oil price runup. Beyond quantifying the responses of oil prices and economic activity, our model informs about the propagation mechanisms. We find evidence that nonoil trade linkages are an important transmission channel for shocks that affect oil prices. Conversely, nominal rigidities and monetary policy are not. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgif:1031&r=bec |
| By: | Marie-Laure Allain (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X); Emeric Henry (Sciences Po - Department of Economics); Margaret Kyle (TSE - Toulouse School of Economics - Toulouse School of Economics) |
| Abstract: | The sale of ideas (e.g. through licensing) facilitates vertical specialization and the division of labor between research and development. This specialization can improve the overall efficiency of the innovative process. However, these gains depend on the timing of the sale: the buyer of an idea should assume development at the stage at which he has an efficiency advantage. We show that in an environment with asymmetric information about the value of the idea and where this asymmetry decreases as the product is developed, the seller of the idea may delay the sale to the more efficient firm, thus incurring higher development costs. We obtain a condition for the equilibrium timing of the sale and examine how factors such as the intensity of competition between potential buyers influence it. Empirical analysis of licensing contracts signed between firms in the pharmaceutical industry supports our theoretical predictions. |
| Keywords: | Innovation, Licensing, Market structure, Bargaining, Pharmaceuticals, Biotechnology. |
| Date: | 2011–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00639128&r=bec |
| By: | Timothy K.M. Beatty (University of Minnesota Institute for Fiscal Studies); Laura Blow (Institute for Fiscal Studies); Thomas F. Crossley (Koç University , University of Cambridge and Institute for Fiscal Studies) |
| Abstract: | We merge detailed household level expenditure data from older households with historical local weather information. We then test for a heat or eat trade off: do households cut back on food spending to finance the additional cost of keeping warm during cold shocks? For households who cannot smooth consumption over time, cold weather shocks are equivalent to income shocks. We find evidence that the poorest of older households are unable to smooth spending over the worst temperature shocks. Statistically significant reductions in food spending are observed in response to winter temperatures two or more standard deviations colder than expected (which occur about one winter month in forty) and reductions in food expenditure are considerably larger in poorer households. |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:koc:wpaper:1133&r=bec |
| By: | Tomoyasu Tanaka; Takao Goto |
| Abstract: | In Japan, many local mixed enterprises owned and operated jointly by local governments and private sectors had been established from the late 1980’s to the early 1990’s in order to provide public services more efficiently. At present, in Japan, many local mixed enterprises are confronted with a serial fiscal crisis. In 2007, the national government enacted the Local Public Finance Reconstruction Law and started to lead local mixed enterprises and local governments to achieve fiscal soundness. In addition to local governments, mixed enterprises have to make an effort to operate more efficiently. However, we believe that local mixed enterprises lack the incentives to manage more efficiently because of the governance structure. Firstly, as local mixed enterprises are owned by local governments, they can procure government-guaranteed funds and are able to raise capital more easily. Also, if business conditions of enterprises worsen, local governments give subsidies to bail out ailing enterprises. Managers do not have to worry about going bankrupt and might continue to carry out inefficient projects. Secondly, if managers are from local governments, or if the majority of the board members are local government officials, they might supply services without putting stress on profit. Therefore, it is possible that the governance structure of local mixed enterprises is the important factor that determines their performance. In this paper, we study the link between the performance and the governance structure in local mixed enterprises. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p539&r=bec |
| By: | Chrysanthi Balomenou; John Magridis |
| Abstract: | Our article consists of the following 4 parts: - In the first part: documented the importance of credit risk with the presentation - analysis of the growth of 6 Greek major financial institutions loan portfolio, for the period 2001 to 2008 and comparison of the loan amount with their own funds and total assets them (based on published accounts). - In the second part: we refer to the approval and monitoring procedures that should be followed by banks using the internal ratings (IRB) methods for corporate loans. Our interest is focused on linking credit ratings to the terms of financing (collateral costs) and on the importance of evaluation / assessment and collateral for the balance of exposures. For typesetting the above is estimated the Risk Weight Assets for PD rating scale (National Bank of Greece published data) and relevant Figure/diagram. - In the third part: we analyse the methodology of key criteria for evaluating the creditworthiness of companies. At the same time for a short description of Greek Business environment we used the -List Easy of Doing Business index 2010- of the World Bank and the results of the assessment of business sectors in Greece according to the model of Credit Risk Tracker Greece's Standard & Poor's, as published by the Hellastat. (The key criteria for evaluating creditworthiness of companies mainly come from research on the websites of the companies Fitch, S & P, Moody's KMV, Hellastat, Easy of Doing Business index). - In fourth part: presented, properly treated, the results of empirical research conducted through distribution of questionnaire to 25 experienced in Risk Management, executives, which was called to assess 20 companies on the basis of their specific quantitative and qualitative characteristics. Finally it is noted that in this final part are also presented all the findings and related conclusions, resulting from the scientific research throughout this paper. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p946&r=bec |
| By: | Anthony Landry |
| Abstract: | I measure the extent of international market segmentation using local, national, and international Big Mac prices. I show that the bulk of time-series price volatility observed across the United States arises between neighboring locations. Using these data, I provide new estimates of border frictions for 14 countries. I find that borders generally introduce only small price wedges, far smaller than those observed across neighboring locations. When expressing these wedges in terms of distance equivalents, I find that border widths are small in relation to price variations observed across the United States. This suggests that international markets are well integrated. |
| Keywords: | International trade |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddgw:95&r=bec |
| By: | Helena Santos-Rodrigues; Pedro Figueroa; Carlos Maria Jardon |
| Abstract: | The intellectual capital is increasingly considered a major issue on the management and organization research and a source of competitive advantage. Although there are different models and approaches that try to identify the effect of intellectual capital on firm performance, there’s, also a lack of evidence and consensus. Based on that evidence, this paper focuses on the influence of the structural capital on the product- process and management innovativeness of the firm. A global model including the variables used in the previous literature is used and we establishes hypotheses for testing this model and use statistic technique to estimate the parameters of the model in a sample. To do so, we use a survey from 68 firms working on the auto components sector, established in the Northern Spain and Northern Portugal. We found firstly, that innovativeness has two main dimensions, perfectly differentiated, the product-process innovation and the management innovation; secondly that the structural capital dimensions influences differently each type of innovation capacity (innovativeness). We also concluded that the structural capital of the automotive firms based on the euro region Galicia (Spain) Northern Portugal influences positive and directly the management innovativeness. These results highlight the importance of the structural capital as well as highlight the main dimensions that influence the innovativeness, and more broadly, the value of intellectual capital as a competitive advantage in contemporary time. Moreover, point out the different character of product-process and management innovativeness. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1386&r=bec |
| By: | Manuel Lopez-Estornell |
| Abstract: | ABSTRACT The dissemination of knowledge in industrial districts (ID) and clusters has often been linked to the existence of a specific tacit knowledge. Thus, the companies belonging to ID specialization sector might sustain a distinctive competitive advantage against isolated firms. However, the observation of technological changes in recent decades and the presence of ID whose technological intensity has dramatically increased in the same period suggest the existence and need for codified knowledge in these agglomerations. As result of tacit knowledge decline, the economic performance of ID could move backwards, given the greater ease to imitate and reproduce their contextual knowledge by competitor firms located in not district areas. The paper discusses the above assumptions, suggesting the existence of combinations/hybridizations of both types of knowledge in ID, which we have named locational-translational knowledge. This third type of knowledge could explain the maintenance of ID contextual advantages even in presence of higher doses of codified knowledge. This would require the presence of agents acting as interfaces able to absorb new pieces of codified knowledge in order to combine them with local knowledge for adjusting the specific needs of ID. However, we argue the existence of several constraints, such as the size of 'creative market district’, in ID which may require the opening of ID to knowledge imported from academic institutions and other formal research organizations, in contrast with autarky or isolation suggested by tacit knowledge. Finally, an analysis of the ID evolution enables us to appreciate that the process of absorption, combination and dissemination of external knowledge may have existed throughout the life cycle of ID but supported, at each stage, for different institutional agents: the 'impannatore', the 'cappofiliera' firm and, lastly, for formal knowledge-oriented institutions such as the above referred. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p368&r=bec |
| By: | Dan Rickman; Belal Fallah; Mark Partridge |
| Abstract: | This paper examines the spatial pattern of U.S. county employment growth in high-tech industries. The spatial growth dimensions examined include industry cluster effects, urbanization effects, proximity to a college, and proximity in the urban hierarchy. Growth is examined for overall high-tech employment and for employment in various high-tech sectors. Econometric analyses are conducted for a sample of all counties and for metropolitan and non-metropolitan counties separately. Among our primary findings, we do not find evidence of positive localization or cluster growth effects, generally finding negative growth effects. We instead find some evidence of positive urbanization effects and growth penalties for greater distances from larger urban areas. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p518&r=bec |
| By: | Olivier Babeau (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX); Jean-François Chanlat (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX) |
| Abstract: | Rappelant l'intérêt pour les sciences de gestion de s'ouvrir aux apports des autres disciplines, cet article propose de montrer de quelle façon les travaux du sociologue Norbert Alter fournissent des apports déterminants pour notre compréhension du fonctionnement de l'organisation, en particulier en ce qui concerne les phénomènes intimement liés d'innovation et de transgression. Les travaux en sociologie de l'innovation de cet auteur établissent avec force le constat, les formes et enfin les enjeux particuliers des pratiques transgressives habituelles en entreprise. Nous proposons la synthèse de ces travaux en montrant ensuite leurs apports spécifiques aux sciences de gestion ainsi que leurs prolongements envisageables. |
| Keywords: | Transgression; innovation |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00641100&r=bec |
| By: | Giuliano Guerra (Institute for Economic Research (IRE), Faculty of Economics, University of Lugano, Switzerland) |
| Abstract: | As observed in many advanced economies experiencing an increase of self-employment rates since the late 1970s, a flourishing small- and medium-size enterprise sector is traditionally associated with positive economic development and growth. In the regional context, areas benefiting from an established entrepreneurial culture are in general more successful and innovative, as well as better equipped to sustain structural changes and to contrast unemployment. It is therefore important to investigate the reasons why individuals choose self-employment, and why they do it despite lower protection, higher risks, and possibly more effort than what is offered in a comparable wage employment position. Existing research identifies better prospects of entrepreneurial earnings as compared to wages as a major attraction towards self-employment. However, beside pecuniary motivations, other factors may be considered when it comes to occupational choice, as, among others, displacement, uncertainty, (the threat of) unemployment, and (dis-)satisfaction. Building on a job quits model, we propose a representation of transition behaviour from wage to self-employment which includes subjective evaluations of pecuniary and nonpecuniary satisfaction on the previous job. Individual microdata are drawn from the Swiss Household Panel (SHP), and cover the time period 1999–2008. Additionally, we focus on the dynamics of job satisfaction in order to highlight the role played by shocks in subjective evaluations, and introduce their interaction with levels to control for threshold effects. |
| Keywords: | self-employment, job satisfaction, job transition, Switzerland |
| JEL: | C25 J62 M13 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:lug:wpaper:1201&r=bec |
| By: | Toshiharu Ishikawa; Rickard Wall |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p362&r=bec |
| By: | Fernando Rubiera Morollón; Mario Polèse |
| Abstract: | The spatial distribution of employment in service industries is compared for Spain and Canada for nine (9) industry classes. The empirical and theoretical literature on modern services stresses the importance of agglomeration economies for high-order services. The relationship between city-size and location is examined with emphasis on cases that deviate from predicted patterns. The results for Spain and Canada reconfirm the weight of city-size as a determinant of location for high-order services. However, once one goes beyond this fairly predictable result, national differences in geography, institutions, and development come to the fore, making generalizations more difficult. Unlike most manufacturing industries, the definition and the spatial behavior of many service sectors is highly sensitive to institutional factors, creating unique patterns largely fashioned by national context. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p209&r=bec |
| By: | Gary Bosworth |
| Abstract: | This paper reports on findings from business surveys and face to face interviews conducted in the North East and East Midlands regions of the UK. Previous studies into residential counterurbanisation have shown a range of factors influencing individuals’ choices to move house. Here, it is hypothesised that for some commercial counterurbanisers, those rural in-migrants running businesses in their new rural locality, there will be different influences. Focusing on two groups of commercial counterurbanisers, the planned and un-planned business starters, it is also hypothesised that the different expectations and influences will affect their subsequent perceptions of the rural area as a place to do business. Greater understanding of the characteristics of place that are attractive to business starters and latent entrepreneurs can guide spatial economic policy which has become increasingly concerned with “place competitiveness†(Bristow, 2011). Keywords: Commercial Counterurbanisation, entrepreneurship, place competition, competitiveness, rural business, rural economy. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1662&r=bec |
| By: | Fabio Sforzi; Silvia Lombardi; Flavio Verrecchia |
| Abstract: | Chinese migration flows represent a relatively new phenomenon in Italy. Its entrepreneurial nature is reflected in massive flows Chinese businessman employed both in manufacturing and commercial activities, with a dense concentration in correspondence of some industrial districts. The aim of the paper is to shed some light on current Chinese specialization of economic activities and localization across Italian regions and industrial districts, to test interpretative research hypothesis on Chinese entrepreneurship models and identify agglomeration forces underlying the emergence of so-called Chinese ethnic businesses. Some reflections on the manufacturing and commercial attitude of Chinese entrepreneurship will also be considered. The utilization of native-Chinese entrepreneurs as unit of observation represents an innovative methodological contribution based on ASIA-ISTAT archives. The exercise of explorative analysis based on data processing and spatial analysis will finally highlight business migration patterns, which represent new socio-economic challenges for Italian industrial districts |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p626&r=bec |
| By: | Martin Ljunge (University of Copenhagen and SITE) |
| Abstract: | I estimate a price elasticity of sickness absence. Sick leave is an intensive margin of labor supply where individuals are free to adjust. I exploit variation in tax rates over two decades, which provide thousands of differential incentives across time and space, to estimate the price responsiveness. High taxes provide an incentive to take more sick leave, as less after tax income is lost when taxes are high. The panel data, which is representative of the Swedish population, allow for extensive controls including unobserved individual characteristics. I find a substantial price elasticity of sick leave, -0.7, with respect to the net of tax rate. Though large relative to traditional labor supply elasticities, Swedes are half as price elastic as bike messengers, and just as elastic as stadium vendors on the margin which they can adjust freely. |
| Keywords: | sick leave, adjustable labor supply, work effort, taxes |
| JEL: | H31 I31 J22 |
| Date: | 2011–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuiedp:1127&r=bec |