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on Economics of Strategic Management |
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Issue of 2018‒08‒13
five papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Øivind Anti Nilsen; Arvid Raknerud; Diana-Cristina Iancu |
| Abstract: | We analyse all the major sources of direct and indirect R&D subsidies in Norway in the period 2002-2013 and compare their effects on individual firms’ performance. Firms that received support are matched with a control group of firms that did not receive support using a combination of stratification and propensity score matching. Changes in performance indicators before and after support in the treatment group are compared with contemporaneous changes in the control group. We find that the average effects of R&D support among those who obtained grants and/or subsidies are positive and significant in terms of performance indicators related to economic growth: value added, sales revenue and number of employees. The estimated effects are larger for start-up firms than incumbent firms when the effects are measured as relative effects (in percentage points), but smaller when these effects are translated into level effects. Finally, we do not find positive effects on return to total assets or productivity for firms who received support compared with the control group. |
| Keywords: | public policy, firm performance, treatment effects, stratification, propensity score matching, productivity |
| JEL: | C33 C52 D24 O38 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7131&r=cse |
| By: | G. Marletto; C. Sillig |
| Abstract: | Grassroots innovations provide a significant contribution to sustainability transitions. They differ from other innovations as they originate in civil society and are mostly inspired by ideological values. While there is extensive literature on the embeddedness of grassroots innovations at the local scale, there is a lack of systematic analysis in the most prominent processes at supra-local and global scale, including mainstreaming. The mainstreaming of grassroots innovations is often characterized by ideological conflicts between (both grassroots and non-grassroots) actors that can give rise to multiple pathways, corresponding to different interpretations and divergent practices of the same grassroots innovation. This paper investigates two issues that are not considered by the relevant literature - 1) the factors underlying the generation of multiple pathways of the same grassroots innovation; 2) the relationship between the dynamics of each pathway and its outcome. Six agrifood and urban mobility grassroots innovations are considered - Fair Trade, Organic, Veganism, Carsharing, Cycling, Shared Space; their analysis is carried out through longitudinal global scale case studies. The comparison between the case studies put in evidence some recurrent patterns between the dynamics and outcome of grassroots innovation pathways. In particular, the presence of bifurcations resulting in multiple pathways is systematic and is always linked to mainstreaming. In terms of outcomes, a trade-off is observed between the congruence with original values (usually high in non-mainstreaming pathways and low in mainstreaming pathways) and the level of empowerment (usually low in non-mainstreaming pathways and medium-high in mainstreaming pathways). Compared to Big Firms, the involvement of institutions into mainstreaming results in less pronounced trade-offs and greater empowerment. |
| Keywords: | grassroots innovation;mainstreaming; agrifood;urban mobility |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201808&r=cse |
| By: | Martinez-Garcia, Enrique (Federal Reserve Bank of Dallas); Grossman, Valerie (Federal Reserve Bank of Dallas) |
| Abstract: | Asset prices in general, and real house prices in particular, are often characterized by a nonlinear data-generating process which displays mildly explosive behavior in some periods. Here, we investigate the effect of asset market spillovers on the emergence of explosiveness in the dynamics of real house prices. The recursive unit root test of Phillips et al. (2015a, b) detects and date-stamps statistically-significant periods of mildly explosive behavior. With that methodology, we establish a timeline of periodically-collapsing episodes of explosiveness for a panel of 23 countries from the Federal Reserve Bank of Dallas’ International House Price Database (Mack and Martínez-García (2011)) between first quarter 1975 and fourth quarter 2015. Motivated by the theoretical notion of financial spillovers, we examine within a dynamic panel logit framework whether macro fundamentals—and, more specifically, financial variables—help predict episodes of explosiveness. Spreads in yields and real stock market growth together with standard macro variables (growth in personal disposable income per capita and inflation) are found empirically to be among the best predictors. We therefore conclude that financial developments in other asset markets play a significant role in the emergence of explosiveness in real house prices. |
| Keywords: | Financial Spillovers; Mildly Explosive Time Series; Right-Tailed Unit-Root Tests; Dynamic Panel Logit Model; International Housing Markets |
| JEL: | C22 G12 R30 R31 |
| Date: | 2018–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddgw:342&r=cse |
| By: | Pedro Carvalho |
| Abstract: | This paper presents empirical evidence on the impact of competition on firm productivity for the Portuguese economy. To that effect, firm-level panel data comprising information between 2010 and 2015 gathered from the Integrated Business Accounts System (Portuguese acronym: SCIE) is used. The database enables the construction of economic and financial indicators, which allow for isolating the impact of competition on firm-level productivity. We find a positive relationship between competition and both total factor productivity and labor productivity. This relationship is found to be robust to different specifications and in accordance with the results in the literature obtained for other countries. |
| Keywords: | Competition, Productivity, Portugal |
| JEL: | D40 D24 O47 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:00108&r=cse |
| By: | Kolasa, Marcin; Wesołowski, Grzegorz |
| Abstract: | This paper develops a two-country model with asset market segmentation to investigate the effects of quantitative easing implemented by the major central banks on a typical small open economy that follows independent monetary policy. The model is able to replicate the key empirical facts on emerging countries’ response to large scale asset purchases conducted abroad, including inflow of capital to local sovereign bond markets and an increase in international comovement of term premia. According to our simulations, quantitative easing abroad boosts domestic demand in the small economy, but undermines its international competitiveness and depresses aggregate output, at least in the short run. This is in contrast to conventional monetary easing in the large economy, which has positive spillovers to output in other countries. We also find that limiting these spillovers might require policies that affect directly international capital flows, like imposing capital controls or mimicking quantitative easing abroad by purchasing local long-term bonds. JEL Classification: E44, E52, F41 |
| Keywords: | bond market segmentation, international spillovers, quantitative easing, term premia |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20182172&r=cse |