nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2006‒11‒12
five papers chosen by
Emanuele Canegrati
Catholic University of the Sacred Heart

  1. Heterogeneity and the Dynamics of Technology Adoption By Stephen Ryan; Catherine Tucker
  2. A unified differential information framework assessing that more information is preferred to less By Fugarolas Álvarez-Ude, Guadalupe; Hervés-Beloso, Carlos
  3. Labor market flexibility and investment in human capital By Djavad Salehi-Isfahani; Russell D. Murphy
  4. The Hidden Surplus From Research Joint Ventures: An Application Of Systems Reliability Theory By Manfredi M.A. La Manna 
  5. Dynamic Network Formation By Jack Ochs; In-Uck Park

  1. By: Stephen Ryan (MIT and NBER); Catherine Tucker (MIT Sloan School of Business)
    Abstract: This paper analyzes the role of heterogeneity and forward-looking expectations in the diffusion of network technologies. Using a detailed dataset on the adoption of a new videoconferencing technology within a firm, we estimate a structural model of technology adoption and communications choice. We allow for heterogeneity in network benefits and adoption costs across agents. We find that ignoring heterogeneity in the interplay between adoption costs and network effects will underpredict the size of the steady-state network size by almost 50 percent. We develop a new “simulated sequence estimator” to measure the extent to which agents seek diversity in their calling behavior, and characterize the patterns of communication as a function of geography, job function, and rank within the firm. We find that agents have significant welfare gains from having access to a diverse network, and that a policy of strategically targeting the right subtype for initial adoption can lead to a faster-growing and larger network than a policy of uncoordinated or diffuse adoption.
    Date: 2006–10
  2. By: Fugarolas Álvarez-Ude, Guadalupe; Hervés-Beloso, Carlos
    Abstract: The Walrasian model has played a central role in all aspects of economics. The purpose of this paper is to propose a general modeling of differential information in the spirit of the Arrow-Debreu model and following the Radner tradition but away from the usual measurability conception. We provide a characterization of better informed agents in order to firstly formalize an essential feature known as part of some oral tradition: a decisionmaker prefers more information to less.
    Keywords: Uncertainty; differential information; information sets; informational feasibility and better informed agents
    JEL: D80 C65 D50
    Date: 2005
  3. By: Djavad Salehi-Isfahani; Russell D. Murphy
    Abstract: We consider the effect of labor market rigidities on human capital accumulation and economic growth when some human capital is difficult to observe prior to employment. We distinguish between two types of human capital, those that formal schooling and test scores can measure (``knowledge") and those that can be observed by employers only after a period of employment (``creativity"). We build a simple model to show when employers have limited discretion to set wages or terminate employment they favor the more reliable signals of ``knowledge'', such as years of schooling and class rank, at the expense ``creativity'', which stands for non-testable skills. Individuals in rigid labor markets will therefore favor greater acquisition of knowledge at the expense of creativity, which results in distorted accumulation of human capital and lower growth. We explore the implications of our model for the relevant debates in the empirical growth literature, returns to education literature, and education policy. Our model suggests a possible reason why the social return to education appears low in cross country regressions. These regressions treat years of schooling in countries with more and less flexible labor markets as the same. We show that distinguishing empirically between countries with rigid and flexible labor markets can help reveal the greater productivity of schooling in the latter. Schooling in the latter is correlated with greater investment in non-observable skills.
    Keywords: Labor Market flexibility, investment in human capital, schooling, cognitive and non-cognitive skills, cross country regressions
    Date: 2006
  4. By: Manfredi M.A. La Manna 
    Abstract: The paper’s aim is two fold: (a) to model some key features of the research process as a multi-component system, as understood by the mathematical theory of systems reliability; and (b) to apply the resulting model to Research Joint Ventures, showing that a potentially very large surplus can be realized purely by organizing research efficiently, i.e. even without any changes in R&D investment.
    Keywords: optimal organization, systems reliability, Research Joint Ventures, parallel and series systems, majorization, organizational surplus.
    JEL: O32
    Date: 2006–11
  5. By: Jack Ochs; In-Uck Park
    Date: 2006–01

This nep-knm issue is ©2006 by Emanuele Canegrati. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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