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on Central and Western Asia |
| By: | Stefano Grassi (Aarhus University and CREATES); Paolo Santucci de Magistris (Aarhus University and CREATES) |
| Abstract: | The persistent nature of equity volatility is investigated by means of a multi-factor stochastic volatility model with time varying parameters. The parameters are estimated by means of a sequential indirect inference procedure which adopts as auxiliary model a time-varying generalization of the HAR model for the realized volatility series. It emerges that during the recent financial crisis the relative weight of the daily component dominates over the monthly term. The estimates of the two factor stochastic volatility model suggest that the change in the dynamic structure of the realized volatility during the financial crisis is due to the increase in the volatility of the persistent volatility term. As a consequence of the dynamics in the stochastic volatility parameters, the shape and curvature of the volatility smile evolve trough time. |
| Keywords: | Time-Varying Parameters, On-line Kalman Filter, Simulation-based inference, Predictive Likelihood, Volatility Factors |
| JEL: | G01 C00 C11 C58 |
| Date: | 2013–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:aah:create:2013-03&r=cwa |
| By: | AfDB |
| Date: | 2013–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:adb:adbwps:447&r=cwa |
| By: | Emily Blanchard; Tatyana Chesnokova (School of Economics, University of Adelaide); Gerald Willmann |
| Abstract: | This paper explores the role of pooled-producer, e.g. private label, trade intermediation n shaping the range and diversity of exports. Direct sales maintain a firm's unique product characteristics (`brand equity'), whereas trade through an intermediary can take two forms--either a wholesaling arrangement that (also) maintains the exporter's unique brand but imposes a higher marginal cost (via double marginalization), or a `private label' contract under which the firm's product is pooled with other rms' output and re-sold under a new private label brand created by the intermediary. This paper focuses on the latter, and shows that the availability of the private label option results in greater total export volumes and lower average prices for consumers, but fewer independent varieties available in equilibrium. Welfare implications are mixed: consumers trade variety for volume, firms face greater competition from the new pooled-products, and intermediaries capture much of the gains from trade. |
| Keywords: | Private Labels, Export Mode, Intermediaries, Heterogeneous Firms, International Retailers |
| JEL: | F13 F16 D72 E60 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:adl:wpaper:2013-01&r=cwa |
| By: | Claudia Curi (School of Economics and Management, Free University of Bozen-Bolzano); Cinzia Daraio (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza"); Patrick Llerena (University of Strasbourg, BETA (Bureau d'Economie Théorique et Appliquée) and Observatoire des Sciences et Techniques (OST, Paris)) |
| Abstract: | This paper assesses the performance in technology transfer operated by the French university system adopting a Malmquist approach within an inferential setting. It investigates an original and unique database of French TTOs over their first development time. We find an overall weak increase in productivity, driven by technology and organisational improvement related to a small number of TTOs. More specifically, most TTOs show a stable innovative behaviour (i.e. no significant technical change) and only half of the system experiences a decline in efficiency change suggesting the lack of one best business model able to fit the entire system. Finally, we find that, on average, the presence of university-related hospital dampens TTOs’ efficiency and TTO´s seniority has a positive effect on productivity, enhancing simultaneously efficiency and innovation |
| Keywords: | Technology Transfer Offices (TTOs; French University System; Malmquist Index; Data Envelopment Analysis (DEA); Bootstrap |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:report:2013-03&r=cwa |
| By: | Salin, Delmy L. |
| Abstract: | This paper is a summary of: Rafael de Farias Costa, C. Parr Rosson, III, and Flynn J. Adcock, Transportation Infrastructure in Brazil: Impacts and Implications for Global Cotton Trade, Texas A&M, CNAS 2012-0. May 2012. Web. <http://cnas.tamu.edu/ Publications/Brazil Cotton Transportation Report June 2012.pdf> Brazil is the third largest cotton exporter after the United States and Uzbekistan. Cotton production in Brazil expanded from 2 million bales in the late 1990s to about 9.3 million bales in 2011. In 2007, Brazil began a comprehensive logistical investment plan to increase competitiveness in the world agricultural market. To increase transportation efficiencies, the Brazilian Government wants to reduce export route distances and port congestion by shifting exports from the southern ports to the north and northeast port regions. Texas AgriLIFE Research scientists estimated the impact of Brazil improvements in transportation infrastructure on cotton production, prices, and exports. Transportation costs for different regions within Brazil were estimated to reflect movements from mill to port. An origin-destination matrix of the Brazilian cotton industry that tracks cotton flows within the country was developed and validated. Findings indicate that a 2- to 3-percent transportation cost reduction would not have a significant impact on the world cotton trade. However, the United States may benefit slightly Brazil main cotton export routes from a 2-percent cost reduction, increasing exports by 640 bales, raising prices 2 cents a bale, and growing revenue by $457,900. If transportation costs drop by 10 percent, Brazilian exports could increase by 64,830 bales, raising prices by $3.61 per bale and increasing revenue by $27.8 million. India and the United States might lose market share. U.S. losses could include 4,490 fewer bales exported at a price of $0.28 less per bale and lower cotton export revenues of $5.7 million. |
| Keywords: | cotton, trade, shipping, export, Brazil, transportation, Agribusiness, Agricultural Finance, International Relations/Trade, Marketing, |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uamstr:145637&r=cwa |
| By: | Zhou Xun (Aix-Marseille University (Aix-Marseille School of Economics), GREQAM, EHESS.); Michel Lubrano (Aix-Marseille University (Aix-Marseille School of Economics), GREQAM-CNRS, EHESS) |
| Abstract: | This paper provides a new estimation of an international poverty line based on a Bayesian approach. We found that the official poverty lines of the poorest countries are related to the countries’ mean consumption level. This new philosophy is to be compared to the previous assumptions made by the World Bank in favour of an absolute poverty line. We propose a new international poverty line at $1.48 per day (2005 PPP) based on a reference group consumption level. This figure is much higher than that proposed by the World Bank ($1.25 in 2005 PPP), but still within a reasonable confidence interval. By this standard, there are more than 1.7 billion people living in poverty. |
| Keywords: | Poverty line, Bayesian inference. |
| Date: | 2013–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1302&r=cwa |
| By: | Roger E.A. Farmer (UCLA Economics); Carine Nourry (Aix-Marseille University (Aix-Marseille School of Economics), CNRS-GREQAM, EHESS & Institut Universitaire de France); Alain Venditti (Aix-Marseille University (Aix-Marseille School of Economics), CNRS-GREQAM, EHESS & EDHEC) |
| Abstract: | Existing literature continues to be unable to offer a convincing explanation for the volatility of the stochastic discount factor in real world data. Our work provides such an explanation. We do not rely on frictions, market incompleteness or transactions costs of any kind. Instead, we modify a simple stochastic representative agent model by allowing for birth and death and by allowing for heterogeneity in agents’ discount factors. We show that these two minor and realistic changes to the timeless Arrow-Debreu paradigm are sufficient to invalidate the implication that competitive financial markets efficiently allocate risk. Our work demonstrates that financial markets, by their very nature, cannot be Pareto efficient, except by chance. Although individuals in our model are rational; markets are not. |
| Keywords: | Inefficient markets, heterogeneous agents, overlapping generations, sunspots, extrinsic uncertainty, excess volatility. |
| Date: | 2013–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1311&r=cwa |
| By: | Anastasia Ellanskaya; Lioudmila Vostrikova |
| Abstract: | We consider utility maximization problem for semi-martingale models depending on a random factor $\xi$. We reduce initial maximization problem to the conditional one, given $\xi=u$, which we solve using dual approach. For HARA utilities we consider information quantities like Kullback-Leibler information and Hellinger integrals, and corresponding information processes. As a particular case we study exponential Levy models depending on random factor. In that case the information processes are deterministic and this fact simplify very much indifference price calculus. Then we give the equations for indifference prices. We show that indifference price for seller and minus indifference price for buyer are risk measures. Finally, we apply the results to Geometric Brownian motion case. Using identity in law technique we give the explicit expression for information quantities. Then, the previous formulas for indifference price can be applied. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1303.1134&r=cwa |
| By: | Hyong-chol O |
| Abstract: | We provided an analytical representation of the price of a barrier option with one type of special moving barrier. We consider the case that risk free rate, dividend rate and stock volatility are time dependent. We get a pricing formula and put call parity for barrier option when the moving barrier has a special relation with risk free rate, dividend rate and stock volatility. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1303.1296&r=cwa |
| By: | Gail Pacheco (Department of Economics, Faculty of Business and Law, Auckland University of Technology); Barrett Owen |
| Abstract: | This study empirically explores the determinants of political participation. Using recent data from the European Social Survey (2010/2011), we investigate the relationship between political participation and personal values, via use of the Schwartz (1992) values inventory. Political activities are categorised into levels of participation (none, weak, medium, strong) based on the cost of participating and how unconventional the activity is. A generalised ordered logit model is applied, and finds that individuals that are more open to change and more self-transcendent, are more likely to participate. Furthermore, the patterns of influence (with respect to the majority of individual characteristics) are not monotonic in nature, as you rise through the levels of political participation, highlighting some key areas that future research could tackle. These findings are important for researchers and policy makers who may be interested in understanding determinants of, and/or enhancing the level of political participation in an economy. |
| Keywords: | personal values, political participation |
| JEL: | D72 P16 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:aut:wpaper:201302&r=cwa |
| By: | Leif Anders Thorsrud |
| Abstract: | We study the synchronization of real and nominal variables across four different regions of the world, Asia, Europe, North and South America, covering 32 different countries. Employing a FAVAR framework, we distinguish between global and regional demand and supply shocks and document the relative contributions of these shocks to explaining macroeconomic fluctuations and synchronization. Our results support the decoupling hypothesis advanced in recent business cycle studies and yields new insights regarding the causes of business cycle synchronization. In particular, global supply shocks cause more severe activity fluctuations in European and North American economies than in Asian and South American economies, whereas global demand shocks shift activity in the different regions in opposite directions at longer horizons. Furthermore, demand shocks play a larger role than that found in related studies. Finally, only innovations to the Asian activity and price factors have significant spillover effects on shared global factors, demonstrating the growing importance of Asia in the global economy. |
| Keywords: | Business cycles, Factor model, Globalization, International macro |
| JEL: | C11 C38 F41 F44 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:bny:wpaper:0012&r=cwa |
| By: | Schneider, Robert J.; Grembek, Offer; Braughton, Matthew; Orrick, Phyllis; Ragland, David R. |
| Abstract: | The high level of pedestrian, bicycle, and transit activity on city-owned streets surrounding the UC Berkeley campus creates a dynamic social environment and gives Berkeley much of its charm. But the streets around the campus (henceforth called the campus periphery) are also places where pedestrians and bicyclists have been injured or killed in collisions with automobiles. This creates liability for drivers, the City, and the University—and worse, causes suffering for crash victims and their families. Everyone has an interest in reducing the frequency and severity of pedestrian and bicycle crashes within the campus periphery. This document, developed by the UC Berkeley Safe Transportation Research and Education Center (SafeTREC), recommends short- and long-term actions to improve pedestrian and bicycle safety on and near the campus. |
| Keywords: | Transportation and Highway Engineering, Public Health |
| Date: | 2013–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt2nc3v9b0&r=cwa |
| By: | Charness, Gary; Masclet, David; Villeval, Marie Claire |
| Abstract: | Unethical behavior within organizations is not rare. We investigate experimentallythe role of status-seeking behavior in sabotage and cheating activities aiming at improving one’sperformance ranking in a flat-wage environment. We find that average effort is higher whenindividuals are informed about their relative performance. However, ranking feedback alsofavors disreputable behavior. Some individuals do not hesitate to incur a cost to improve theirrank by sabotaging others’ work or by increasing artificially their own performance. Introducingsabotage opportunities has a strong detrimental effect on performance. Therefore, rankingincentives should be used with care. Inducing group identity discourages sabotage among peersbut increases in-group rivalry. |
| Keywords: | Economics, Status, ranking, feedback, sabotage, doping, competitive preferences, experiment |
| Date: | 2013–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:ucsbec:qt3858888w&r=cwa |
| By: | Charness, Gary; Grieco, Daniela |
| Abstract: | Creativity is a complex and multi-dimensional phenomenon that has hardly been considered byeconomists, despite a great deal of economic importance. This paper presents a series ofexperiments where subjects face creativity tasks where, in one case, ex-ante goals and constraintsare imposed on their answers, and in the other case no restrictions apply. The effects of financialincentives in stimulating creativity in both types of tasks is then tested, together with the impactof personal features like risk and ambiguity aversion. Our findings show that, in general,financial incentives affect “in-box†(constrained) creativity, but do not facilitate “blue skyâ€(unconstrained) creativity. However, in the latter case incentives do play a role for ambiguityaverseagents, who tend to be significantly less creative and seem to need extrinsic motivation toexert effort in a task whose odds of success they don’t know. We do find that measures ofcreative style, sensation-seeking preferences, and past involvement in artistic endeavors arerelated to our creativity score, but do not find any difference across gender for either form ofcreativity. |
| Keywords: | Economics, creativity, incentives, ambiguity, constraints, ex-ante goals |
| Date: | 2013–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:ucsbec:qt4mr6p1d5&r=cwa |
| By: | Nicholas Bloom; James Liang; John Roberts; Zhichun Jenny Ying |
| Abstract: | About 10% of US employees now regularly work from home (WFH), but there are concerns this can lead to "shirking from home." We report the results of a WFH experiment at CTrip, a 16,000-employee, NASDAQ-listed Chinese travel agency. Call center employees who volunteered to WFH were randomly assigned to work from home or in the office for 9 months. Home working led to a 13% performance increase, of which about 9% was from working more minutes per shift (fewer breaks and sick-days) and 4% from more calls per minute (attributed to a quieter working environment). Home workers also reported improved work satisfaction and experienced less turnover, but their promotion rate conditional on performance fell. Due to the success of the experiment, CTrip rolled-out the option to WFH to the whole firm and allowed the experimental employees to re-select between the home or office. Interestingly, over half of them switched, which led to the gains from WFH almost doubling to 22%. This highlights the benefits of learning and selection effects when adopting modern management practices like WFH. |
| Keywords: | working from home, organization, productivity, field experiment, and China |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1194&r=cwa |
| By: | Nicholas Bloom; Max Floetotto; Nir Jaimovich; Itay Saporta-Eksten; Stephen Terry |
| Abstract: | We propose uncertainty shocks as a new shock that drives business cycles. First, we demonstrate that microeconomic uncertainty is robustly countercyclical, rising sharply during recessions, particularly during the Great Recession of 2007-2009. Second, we quantify the impact of time-varying uncertainty on the economy in a dynamic stochastic general equilibrium model with heterogeneous firms. We find that reasonably calibrated uncertainty shocks can explain drops and rebounds in GDP of around 3%. Moreover, we show that increased uncertainty alters the relative impact of government policies, making them initially less effective and then subsequently more effective. |
| Keywords: | uncertainty |
| JEL: | E3 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1195&r=cwa |
| By: | Helmuth Cremer; Dario Maldonado |
| Abstract: | Abstract: This paper studies oligopolistic competition in education markets when schools can be private and public and when the quality of education depends on “peer group" effects. In the first stage of our game schools set their quality and in the second stage they fix their tuition fees. We examine how the (subgame perfect Nash) equilibrium allocation (qualities, tuition fees and welfare) is affected by the presence of public schools and by their relative position in the quality range. When there are no peer group effects, efficiency is achieved when (at least) all but one school are public. In particular in the two school case, the impact of a public school is spectacular as we go from a setting of extreme differentiation to an efficient allocation. However, in the three school case, a single public school will lower welfare compared to the private equilibrium. We then introduce a peer group e¤ect which, for any given school is determined by its student with the highest ability. These PGE do have a signi.cant impact on the results. The mixed equilibrium is now never efficient. However, welfare continues to be improved if all but one school are public. Overall, the presence of PGE reduces the e¤ectiveness of public schools as regulatory tool in an otherwise private education sector. |
| Date: | 2013–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:010500&r=cwa |
| By: | Maria Alipranti (University of Crete); Evangelos Mitrokostas (Department of Economics, University of Crete); Emmanuel Petrakis (Department of Economics, University of Crete, Greece) |
| Abstract: | The present paper examines endogenously the firms ��incentives to invest in informative and comparative advertising, in an oligopolistic market with horizontally differentiated products where competition take place in quantities. We show that, in equilibrium the fi��rms undertake a mix advertising strategy that combines both informative and comparative advertising investments. We further compare our results over the equilibrium market outcomes and the social welfare obtained under the endogenous advertising con��figuration with the benchmark case, without firms' ��advertising activities, and the cases of mere informative and mere comparative advertising. We demonstrate that the equilibrium market outcomes, as well as, the welfare alter signifi��cantly depending on the type(s) of advertising that fi��rms have available in the market and the degree of the market competition. |
| Keywords: | Informative Advertising, Comparative Advertising, Oligopoly, Product Differentiation. |
| JEL: | L13 M37 |
| Date: | 2013–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:crt:wpaper:1301&r=cwa |
| By: | Cowan, Robin (UNU-MERIT/MGSoG, Maastricht University, and BETA, Universite de Strassbourg); Kamath, Anant (UNU-MERIT/MGSoG) |
| Abstract: | This is a model of knowledge exchange by means of informal interaction among agents in low technology clusters. What this study seeks to do is to colour these exchanges by placing them in an environment of complex social relations, test whether the small-world network structure is the most favourable for knowledge exchanges in these environments, and explore the influence of social relations and network distance. These enquiries are the contribution of this model to the existing series of studies on efficient network structures for knowledge diffusion. We find that the small-world network structure may not be the best network structure for highest and most equitable knowledge distribution, when knowledge exchanges are undertaken in environments of complex social relations. Also, we confirm that the highest and most equitable knowledge distribution is achieved when there is perfect affinity among the agents. |
| Keywords: | Knowledge Exchanges, Small-Worlds, Social Networks, Complex Social Relations |
| JEL: | D85 O33 Z13 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013004&r=cwa |
| By: | Iizuka, Michiko (UNU-MERIT/MGSoG) |
| Abstract: | The innovation systems approach has proven useful in explaining the reasons behind varying economic performance in developing countries. The systemic understanding of the innovation process, which pays attention to the knowledge flow among interactive actors, serves as a useful 'focusing device' for elaborating effective policy to accelerate the innovation process and to contribute to economic development. The existing use of the innovation system may need to change substantially to address present-day societal challenges. The emerging types of innovation-such as user innovation, public sector innovation, social innovation and innovation for inclusive development-have different features from those of existing types. This paper examines the features of emerging types of innovation to assess whether and how the current innovation system can be remodelled to explain emerging social agendas, with particular focus on developing countries. |
| Keywords: | innovation system, user innovation, public sector innovation, social innovation, innovation for inclusive development, developing countries |
| JEL: | O20 O21 O31 O32 O33 O38 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013005&r=cwa |
| By: | Petrick, Matin; Kloss, Mathias |
| Abstract: | The classical problem of agricultural productivity measurement has regained interest owing to recent price hikes in world food markets. At the same time, there is a new methodological debate on the appropriate identification strategies for addressing endogeneity and collinearity problems in production function estimation. We examine the plausibility of four established and innovative identification strategies for the case of agriculture and test a set of related estimators using farmlevel panel datasets from seven EU countries. The newly suggested control function and dynamic panel approaches provide attractive conceptual improvements over the received ‘within’ and duality models. Even so, empirical implementation of the conceptual sophistications built into these estimators does not always live up to expectations. This is particularly true for the dynamic panel estimator, which mostly failed to identify reasonable elasticities for the (quasi-) fixed factors. Less demanding proxy approaches represent an interesting alternative for agricultural applications. In our EU sample, we find very low shadow prices for labour, land and fixed capital across countries. The production elasticity of materials is high, so improving the availability of working capital is the most promising way to increase agricultural productivity. |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:eps:fmwppr:144&r=cwa |
| By: | Jörgensen, Christian; Persson, Morten |
| Abstract: | This study evaluates the degree of segmentation of the market for agricultural machinery and equipment in the EU. We focus on agricultural tractors, the most common and biggest investment in machinery and equipment in the agricultural sector. By using country price data for individual tractor models, we test the law of one price, i.e. the existence of a common price for tractors across EU member states. We find that significant price differences exist, yet unlike most other studies we find that large price deviations are penalised within a short time. The study also shows that transport costs are an important source of price differences, as domestic production leads to lower prices on the domestic market and as price convergence is negatively correlated with distance. Finally, price differences should not solely be understood from a geographical perspective, as evidence supports the idea that farmers’ buying power is significant in explaining price differences within countries. |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:eps:fmwppr:145&r=cwa |
| By: | Carl S. Bonham (UHERO, University of Hawaii at Manoa); Peter Fuleky (UHERO, University of Hawaii at Manoa); Qianxue Zhao (UHERO, University of Hawaii at Manoa) |
| Abstract: | Tourism demand elasticities are central to marketing, forecasting and policy work, but the wide array of occasionally counterintuitive estimates produced by existing empirical studies implies that some of those results may be inaccurate. To improve the precision of estimates, it is natural to turn to the richness of panel data. However, panel estimation using non-stationary data requires careful attention to the likely presence of common shocks shared across the underlying macroeconomic variables and across regions. Several recently developed econometric tools for panel data analysis attempt to deal with such cross-sectional dependence. We apply the estimator of Pesaran (2006)and Kapetinos, Pesaran and Yamagata (2010) to obtain tourism demand elasticities in non-stationary heterogeneous dynamic panels subject to common factors. We study the extent to which tourism arrivals from the US Mainland to Hawaii are driven by fundamentals such as real personal income and the cost of the trip, and we find that neglecting cross-sectional dependence in the data leads to spurious results. |
| Keywords: | Panel Cointegration, Cross-Sectional Dependence, Tourism Demand Hawaii |
| JEL: | C23 C51 L83 R41 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2013-2&r=cwa |
| By: | Mehrotra, Aaron (BOFIT) |
| Abstract: | We document recent developments in the use of sterilisation bonds by six central banks in emerging Asia, and discuss the implications for monetary policy and the financial sector. An important development in the sterilisation of foreign exchange interventions in past years has been the frequent use of central banks’ own paper. There has been an attempt to lengthen the maturity structure of sterilisation bills, and maturities have risen, especially in 2010–11. The choice of sterilisation instrument is likely to depend partly on their relative costs. In particular, as the yield on central bank securities has fallen relative to the rate of remuneration of required reserves, some central banks in Asia have increasingly used central bank securities for sterilisation. |
| Keywords: | sterilisation bond; central bank bonds and bills; foreign exchange reserves; emerging Asia; |
| JEL: | E43 E50 E52 E58 |
| Date: | 2013–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofitp:2013_001&r=cwa |
| By: | Takalo , Tuomas (Bank of Finland Research) |
| Abstract: | Economic interest in innovation policy largely arises from the fundamental importance of innovation to social welfare and from inefficiencies in innovation in a competitive market environment. As a result, a wide variety of public innovation policies are used in practice. This study reviews the economic justifications for public innovation policies and compares the existing policy tools, paying particular attention to the Finnish innovation policy environment. |
| Keywords: | innovation policies; innovation; R&D; incentives; market failures |
| JEL: | G28 H25 O31 O34 O38 |
| Date: | 2013–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2013_001&r=cwa |
| By: | Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Nabavi, Pardis (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper is concerned with the productivity and growth of Swedish exporting firms. Using data on 9,580 manufacturing firms with 10 or more employees for the period 1997-2008, it estimates a dynamic GMM model that captures both the impact of recurrent knowledge investment through innovation and potential spillovers from the local milieu. The majority of the exporting firms are non-innovative. The data reveal that patent applicants located in knowledge intense milieus account for almost 40 percent of total Swedish exports, but only 2 percent of the firms. From the regressions it is shown that, relative to a firm that does not engage in innovation and has scarce access to external knowledge, the level of productivity is 2-12 percent higher for an innovative firm, depending on how innovation is defined and where the innovator is located. The annual long-run growth rate is 0.2-0.7 higher for innovative firms. Moreover, the performance gap between innovative and non-innovative exporters increases with accessibility to external knowledge for the former. |
| Keywords: | Productivity; exports; innovation; geographical knowledge spillovers; panel data |
| JEL: | C23 F14 L25 O31 R32 |
| Date: | 2013–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0296&r=cwa |
| By: | Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Sara (CESIS and CEnSE at Jönköping International Business School); Wallin, Tina (CESIS and CEnSE at Jönköping International Business School) |
| Abstract: | Firms in local industries maintain their capability to generate innovations by simultaneously exploiting internal and external knowledge resources. The paper introduces the notion variety triplet to distinguish individual export varieties, where a triplet is a unique combination of a firm, a product code and a destination country. For each date the set of variety triplets in each local industry records all remaining past product innovations. In view of this the paper examines how internal and external knowledge of local industries influence the industry’s scope and value of export varieties. The paper contributes to existing knowledge firstly by introducing variables that measure a local industry’s access to external supply of knowledge, divided into local and extra-local supply. Secondly, the paper sheds light on how internal and external knowledge influence the scope of product innovations in local industries, with firm-level data from Sweden. Thirdly, the paper compares the influence of knowledge on the entire set of variety triplets and on a separate set of recently introduced varieties. |
| Keywords: | Product varieties; innovation; internal knowledge; external knowledge; KIBS |
| JEL: | F12 F14 R12 R32 |
| Date: | 2013–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0297&r=cwa |
| By: | Carlsson, Bo (Case Western Reserve University); Braunerhjelm, Pontus (Royal Institute of Technology); McKelvey, Maureen (Gothenburg University); Olofsson, Christer (University of Agriculture); Persson, Lars (Research Institute of Industrial Economics (IFN)); Ylinenpää, Håkan (Luleå Technical University) |
| Abstract: | Research on entrepreneurship has flourished in recent years and is evolving rapidly. This paper explores the history of entrepreneurship research, how the research domain has evolved, and its current status as an academic field. The need to concretize these issues stems partly from a general interest to define the current research domain, partly from the more specific tasks confronting the prize committee of the Global Award for Entrepreneurship Research. <p> Entrepreneurship has developed in many sub-fields within several disciplines – primarily economics, management/business administration, sociology, psychology, economic and cultural anthropology, business history, strategy, marketing, finance, and geography – representing a variety of research traditions, perspectives, and methods. We present an analytical framework that organizes our thinking about the domain of entrepreneurship research, by specifying elements, levels of analysis and the process/context. An overview is provided of where the field stands today and how it is positioned relative to the existing disciplines and new research fields upon which it draws. <p> Areas needed for future progress are highlighted, particularly the need for a rigorous dynamic theory of entrepreneurship that relates entrepreneurial activity to economic growth and human welfare. Moreover, applied work based on more careful design as well as on theoretical models yielding more credible and robust estimates seems also highly warranted. |
| Keywords: | Entrepreneurship research; Evolution; Academic disciplines; Global Award for Entrepreneurship Research |
| JEL: | B00 L26 M13 O10 |
| Date: | 2013–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0948&r=cwa |
| By: | Andersson, Martin (CIRCLE Lund University, Blekinge Institute of Technology) |
| Abstract: | It is often claimed that there are locally embedded values and attitudes towards entrepreneurship, exerting a strong influence on the rate and level of entrepreneurial activity in regions. The concept of regional entrepreneurship culture aims to capture such phenomena, and refers in a general sense to the level of social acceptance and encouragement of entrepreneurs and their activities in a region. This paper discusses regional entrepreneurship culture as a source of persistent differences in regional rates of new firm formation, and presents a number of empirical regularities for Sweden to illustrate the empirical relevance of the main arguments. Using data on rates of new firm formation across Swedish regions over time, the paper further explores the association between start-up activity and the business cycle, as well as how the geographic distribution of start-up rates changes during a major economic crisis. |
| Keywords: | entrepreneurship; start-ups; geography; culture; business cycles; social capital; persistence |
| JEL: | L26 O18 R11 R12 |
| Date: | 2013–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_001&r=cwa |
| By: | Korpi, Martin (Institute for Economic and Business History Research, Stockholm School of Economics); Hedberg, Charlotta (Stockholm University Linnaeus Center for Integration Studies - SULCIS); Pettersson, Katarina (Nordic Centre for Spatial Development) |
| Abstract: | Using unique Swedish longitudinal full-population data and logistic regression, this paper explores whether start-ups of foreign born female heath care workers are structurally (i.e. comparatively higher unemployment and lower wages) or culturally (defined as country of birth) motivated. While structural factors are significantly related to female entrepreneurship regardless of origin, no additional effect is found whether for foreign born more broadly defined, or when adding specific country of birth. Thus, we conclude that structural disadvantage motives, based on gender rather than ethnicity, dominate over possible cultural motives for entrepreneurship. |
| Keywords: | Immigration; Gender; Entrepreneurship |
| JEL: | I11 J15 J16 L26 |
| Date: | 2013–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sulcis:2013_003&r=cwa |
| By: | Kolm, Ann-Sofie (Dept. of Economics, Stockholm University); Tonin, Mirco (University of Southampton (and Central European University, Budapest; IZA, Bonn)) |
| Abstract: | Welfare benefits in the Nordic countries are often tied to employment. We argue that this is one of the factors behind the success of the Nordic model, where a comprehensive welfare state is associated with high employment. In a general equilibrium setting, the underlining mechanism works through wage moderation and job creation. The benefits make it more important to hold a job, thus lower wages will be accepted, and more jobs created. Moreover, we show that the incentive to acquire higher education improves, further boosting employment in the long run. These positive effects help counteracting the negative impact of taxation. |
| Keywords: | Nordic model; in-work benefits; wage adjustment; unemployment; education; skill formation; earnings |
| JEL: | H24 J21 J24 |
| Date: | 2013–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2013_0001&r=cwa |
| By: | Lindahl, Mikael (Uppsala University, CESifo, IFAU, IZA and UCLS); Palme, Mårten (Dept. of Economics, Stockholm University); Sandgren Massih, Sofia (Uppsala University); Sjögren, Anna (IFAU, UCLS and SOFI Stockholm University) |
| Abstract: | We estimate the well-known Becker-Tomes (1986) model of intergenerational transmission of human capital. A Swedish data set which links individual measures on educational attainments of four generations, enables us to use great grandparents’ education as an instrumental variable. This approach was suggested already in Becker- Tomes (1986) but, because of the lack of data, never implemented. The identifying assumption, which holds within the Becker-Tomes framework, is that great grandparents’ education is unrelated to great grandchild’s education, conditional on the education of the parent and grandparent. We test the prediction that the structural parameter for grandparents’ education enters with a negative sign in an intergenerational regression model where the education of a child is linearly related to the education of the parent and the education of the grandparent. We fail to find empirical support for the model’s predictions. |
| Keywords: | The Becker-Tomes model; Human capital transmission; Multigenerational effects |
| JEL: | D31 J62 |
| Date: | 2013–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2013_0002&r=cwa |
| By: | Hiroshi Kato; Haruka Usuki; Erina Iwasaki |
| Abstract: | Arab world is essentially an urban society, whose typical examples are the primate capital cities in the Arab countries. In case of Amman, the capital of Jordan, it grew rapidly with the economic development in recent decades, and currently has 40% of national population. Its spatial expansion took place without urban planning, and is associated with many social and economic problems. However, the singularity of Amman is in its development in relation to migration. Since the independence of Jordan in 1946, Amman has accommodated the refugees and migrants that flowed into whenever wars and conflicts occurred in the Middle East. As such, Jordan is one of the most important buffer states in the Middle Eastern politics. There are few empirical studies based on statistical data on Amman urban society, and detailed studies that focus attentions on its spatial transformation are rare. Our paper aims at providing the basic information concerning the socioeconomic situations in Amman based on the data derived from the Amman Household Survey 2008, in view of the future research on the urban development of Amman. Originality of our paper lies in setting 'district' (liwa') as a base of analysis. By doing so, we categorize the 'districts' from socioeconomic point of view, and clarifies the socioeconomic characteristics of 'districts' which reflect the close relationship between social structuring and migration from inside and outside Jordan. |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd12-272&r=cwa |
| By: | Yukinobu Kitamura |
| Abstract: | This paper explores a reasonable consumption tax (VAT) reform in Japan, after passing the tax reform bill in the Diet in August 2012. First, the macro (SNA) data indicates that tax revenue increases by about 12 trillion yen if the VAT rate is raised from 5% to 10%. Secondly, the VAT revenue function reveals the revenue elasticity with respect to 1% consumption increase is 0.96. This is very efficient. Thirdly, remaining tax administration issues are discussed. Fourthly the empirical consumer demand system (QUAIDS) is derived from the optimal consumption behavior. Fifthly, using Family Income and Expenditure Survey from January 1985 to April 2012 for the two or more member worker’s household, food and health & medical expenditure indicate significantly negative price elasticity of demand and those for other expenditures are insignificant, i.e. zero. It is justifiable to set a uniform tax rate for those items except food and health & medical expenditure. As to health & medical expenditure, many items within health & medical expenditure are already tax exempt and thus effective tax rate for health & medical expenditure is around 2%. There is no need to consider a further tax rate reduction for this. As to food expenditure, effective tax rate is around 7% due to alcohol and other sales tax. This item is worth considering a reduction of tax rate. However, a share of food expenditure is quite high (i.e. around 20%) so that tax revenue loss would be high if a reduced tax rate is applied for many food items. In addition, it will be quite arbitrary and politically biased to decide as to which food items are to be tax reduced. For a moment, it may be reasonable not to implement any tax reduction for food items. |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd12-274&r=cwa |
| By: | Bobtcheff, Catherine (Toulouse School of Economics (CNRS, LERNA)); Bolte, Jérôme (Toulouse School of Economics (GREMAQ)); Mariotti, Thomas (Toulouse School of Economics (CNRS, GREMAQ, IDEI)) |
| Abstract: | We model academic competition as a game in which researchers ¯ght for priority. Researchers privately experience breakthroughs and decide how long to let their ideas mature before making them public, thereby establishing priority. In a two-researcher, symmetric environment, the resulting preemption game has a unique equilibrium. We study how the shape of the breakthrough distribution affects equilibrium maturation delays. Making researchers better at discovering new ideas or at developing them has contrasted effects on the quality of research outputs. Finally, when researchers have different innovative abilities, speed of discovery and maturation of ideas are positively correlated in equilibrium. |
| Keywords: | Academic Competition, Preemption Games, Private Information. |
| JEL: | C73 D82 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:26784&r=cwa |
| By: | OECD |
| Abstract: | The OECD's Towards Green Growth states that green growth is about fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. To do this it is necessary to foster investment and innovation, which will underpin sustained growth and give rise to new economic opportunities... |
| Date: | 2013–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaab:2013/1-en&r=cwa |
| By: | Porath, Amiram (CREST Expert Group) |
| Abstract: | Collaborative Research (CR) is usually regarded as a way to overcome several R&D barriers: the limitations of specific R&D projects resulting from lack of finance required for research infrastructure investment; the lack of expertise in industry (while it exists in academic institutes); and successful knowledge transfer. CR can be regarded as a strategic Open Innovation tool. In a book published in 2010 (Porath, 2010) I discussed CR on various aspects, analyzing it from the academic point of view and in the later part of the book on the practical aspects of participants and policy makers. Two recent books have been published, in which I have one chapter each. In the first one I presented a model (Porath, 2012a); and in the second a case study (Porath 2012b) regarding Open Innovation. These chapters have not dealt with CR as Open Innovation but rather presented another tool that has made Open Innovation a strategy for companies with little other choice. In this chapter I will combine the three sources into a more comprehensive picture. |
| Keywords: | Collaborative research; Open innovation; Knowledge management |
| JEL: | L14 L17 O32 |
| Date: | 2013–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_001&r=cwa |
| By: | Romão, João (University of Algarve); Rodrigues, Paulo M. (University of Algarve); Guerreiro, João (University of Algarve) |
| Abstract: | The differentiation of tourism destinations depends on the innovative integration of local cultural and natural characteristics of the territory into the regional touristic supply. A panel data model is used to identify – and to confirm – the influence of these “new” conditions for sustainable tourism development in the regional attractiveness in Southwest Europe, between 2003 and 2008. Other “traditional conditions” are also taken into consideration, namely those related to infrastructures and economic conditions. The work includes a critical literature review on the regional tourism systems, their relation with regional systems of innovation and the contribution of natural and cultural assets for the differentiation of tourism destinations. |
| Keywords: | Tourism; Innovation; Differentiation; Nature; Heritage; Region |
| JEL: | C23 O33 Q56 |
| Date: | 2013–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_003&r=cwa |
| By: | Damien S.Eldridge (School Economics, La Trobe University) |
| Abstract: | The health care industry in some countries displays a gated structure. Rather than approaching a specialist directly, a patient will first seek a referral from a general practitioner. We provide one possible explanation for such an industry structure. If the outcome of treatment depends on the effort exerted by the treating specialist, then a market failure might occur. By aggregating many patients, general practitioners can sometimes create an artificial long- run relationship between a patient and a specialist that otherwise would have a short-run relationship. Such an artificial long-run relationship reduces the incidence of shirking on the part of the specialist. |
| Keywords: | Gatekeepers, Reputation, Moral Hazard, Referral |
| JEL: | C73 D82 I11 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:trb:wpaper:2013.01&r=cwa |
| By: | Daniel Halbheer (Department of Business Administration (IBW), University of Zurich); Florian Stahl (Department of Business Administration (IBW), University of Zurich); Oded Koenigsberg (Department of Marketing, London Business School); Donald R. Lehmann (Marketing, Columbia Business School) |
| Abstract: | This paper studies content strategies for online publishers of digital information goods. It examines sampling strategies and compares their performance to paid content and free content strategies. A sampling strategy, where some of the content is offered for free and consumers are charged for access to the rest, is known as a “metered model” in the newspaper industry. We analyze optimal decisions concerning the size of the sample and the price of the paid content when sampling serves the dual purpose of disclosing content quality and generating advertising revenue. We show in a reduced-form model how the publisher’s optimal ratio of advertising revenue to sales revenue is linked to characteristics of both the content market and the advertising market. We assume that consumers learn about content quality from the free samples in a Bayesian fashion. Surprisingly, we find that it can be optimal for the publisher to generate advertising revenue by offering free samples even when sampling reduces both prior quality expectations and content demand. In addition, we show that it can be optimal for the publisher to refrain from revealing quality through free samples when advertising effectiveness is low and content quality is high. |
| Keywords: | Information Goods, Sampling, Content Pricing, Advertising, Dorfman-Steiner Condition, Pricing, Product Quality, Bayesian Learning, News Websites |
| JEL: | L11 L15 L21 M21 M30 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:zrh:wpaper:329&r=cwa |