nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2018‒07‒23
five papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Energy, knowledge, and demo-economic development in the long run: a unified growth model By Victor Court; Emmanuel Bovari
  2. Threats to scientific progress, past and present By Alessandro Iaria; Carlo Schwarz; Fabian Waldinger
  3. The Knowledge-Diffusion Bottleneck in Economic Growth and Development By Staley, Mark
  4. Bank Lending in the Knowledge Economy By DellAriccia, Giovanni; Kadyrzhanova, Dalida; lev, ratnovski; Minoiu, Camelia
  5. ICT, Leisure Externality and Wellbeing By Dibyendu Maiti

  1. By: Victor Court (CERES-ERTI - Centre d'Enseignement et de Recherche sur l'Environnement et la Societé / Environmental Research and Teaching Institute - ENS Paris - École normale supérieure - Paris, Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier); Emmanuel Bovari (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier)
    Abstract: This article provides a knowledge-based and energy-centered unified growth model of the economic transition from limited to sustained growth. We model the transition between: (i) a pre-modern organic regime defined by limited growth in per capita output, high fertility, low levels of human capital, technological progress generated by learning-by-doing, and rare GPT arrivals; and (ii) a modern fossil regime characterized by sustained growth of per capita output, low fertility, high levels of human capital, technological progress generated by profit-motivated R\&D, and increasingly frequent GPT arrivals. The associated energy transition results from the endogenous shortage of renewable resources availability, and the arrival of new GPTs which redirect technological progress towards the exploitation of previously unprofitable exhaustible energy. Calibrations of the model are currently in progress: (i) to replicate the historical experience of England from 1560 to 2010; and (ii) to compare the different trajectories of Western Europe and Eastern Asia.
    Keywords: Unified Growth Theory,Useful Knowledge,Energy Transition,Demography
    Date: 2018–01–31
  2. By: Alessandro Iaria; Carlo Schwarz; Fabian Waldinger
    Abstract: A US boycott of Chinese researchers, as threatened by the Trump administration, could stifle scientific progress and technological innovation. That is the concern of Alessandro Iaria, Carlo Schwarz and Fabian Waldinger, whose research looks at the period between 1914 and 1926, when Allied scientists were cut off from their peers in Central countries - with damaging consequences for world science. Their study reveals how the interruption of international knowledge flows, as a result of the First World War and its aftermath, led to stark declines in the production of research deemed worthy of a Nobel prize nomination. Barriers to international scientific co-operation slow down the production of basic science and its application in new technologies. In contrast, policies that widen access to frontier research could benefit society beyond the confines of science itself.
    Keywords: frontier knowledge, scientific production, international knowledge flows, WW1
    JEL: O3 N3 N4 O31 O5 N30 N40 J44 I23
    Date: 2018–07
  3. By: Staley, Mark
    Abstract: If learning and teaching were easy, the whole world would be developed and frontier knowledge would spread quickly. But learning is difficult and there is a finite capacity for teaching. The concept of a knowledge-diffusion ``bottleneck'' can be used to explain why there is a negative correlation between per-capita income growth rates and fertility rates, especially amongst countries that are in the early stages of industrialization. It can also explain why income distributions in rich countries have power-law tails (both upper and lower) and why income growth rates are independent of scale. A simple model of knowledge diffusion is calibrated to the observed paths of structural transformation in newly-industrializing countries. The resulting parameters are found to be consistent with the tail exponents seen in U.S. income data, suggesting a common mechanism of knowledge diffusion operating in developing countries and fully-developed countries.
    Keywords: Growth, Diffusion, Development, Bottleneck
    JEL: E00 O10
    Date: 2018–06–09
  4. By: DellAriccia, Giovanni; Kadyrzhanova, Dalida; lev, ratnovski; Minoiu, Camelia
    Abstract: We study bank portfolio allocations during the transition of the real sector to a knowledge economy in which firms increasingly use intangible assets. We show that higher corporate investment in intangible assets slows down banks' commercial lending. Banks reallocate the resulting lending capacity to other assets, notably mortgages. The findings are consistent with financial intermediation frictions due to lower collateral value of corporate intangible assets. Additional tests rule out alternative explanations such as higher mortgage demand. We estimate that higher corporate intangible assets conservatively explain 25-40% of the decline in bank commercial lending since the mid-1980s.
    Keywords: bank lending; commercial loans; corporate intangible assets; real estate loans
    JEL: E22 E44 G21
    Date: 2018–06
  5. By: Dibyendu Maiti (Department of Economics, Delhi School of Economics)
    Abstract: ICTs that offers various goods and services to be used specially during the leisure time create two types of favourable ‘leisure externality’ - on direct utility and income through the formation of knowledge and social capital required productivity improvement. The paper builds a two-sector static model with consumption and leisure goods to capture such leisure externalities endogenously. Raising marginal benefits of leisure, one externality increases the demand for labour to meet additional production for ICT goods and consumption goods. This apart, the other externality raises productivity through knowledge formation, which could bind the labour demand. In effect, both income and utility tend to rise in presence both externalities, but it does not necessarily reduce the gap between them (known as Eastelin paradox) and depends upon their relative strengths .
    Keywords: ICT, Leisure Externality, Two-sector model, Income-utility gap
    JEL: I31 J22 O41
    Date: 2018–04

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