nep-net New Economics Papers
on Network Economics
Issue of 2015‒01‒26
five papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Effects of taxes and subsidies on media services By Kind, Hans Jarle; Møen, Jarle
  2. The Analysis of Leadership Formation in Networks Based on Shapley Value By Belik, Ivan; Jörnsten, Kurt
  3. Technological parks and the innovation activity of enterprises in the industrial networks – developed regions vs. the intermediate ones By Jadwiga Goraczkowska
  4. The Italian Corporate System: SOEs, Private Firms and Institutions in a Network Perspective (1952-1983) By Leonardo Bargigli; Renato Giannetti
  5. Co-Producing Sustainability Knowledge: Assessing SANDEE's Role as a Research Network in South Asia By Pranab Mukhopadhyay Mani Nepal Priya Shyamsundar

  1. By: Kind, Hans Jarle (Dept. of Economics, Norwegian School of Economics); Møen, Jarle (Dept. of Business and Management Science, Norwegian School of Economics)
    Abstract: We start out reviewing the justification for press subsidies. The social value of journalism can be larger than what the newspapers are able to extract because of knowledge externalities, public good characteristics of investigative journalism and nonappropriability of consumer surplus. A free market will then underinvest in journalism. Problems related to economies of scale and scope further imply that the number of newspapers and their circulations may be too small, while advertising can give newspapers too strong incentives to aim for the mass market. According to the media economics literature, a preferential VAT regime provides higher differentiation incentives for existing newspapers, while a tax deduction for editorial expenses is well suited to increase journalistic investments. Micro economic theory further indicates that fixed transfers is the most efficient instrument to reduce entry barriers and avoid newspaper mortality, and that a subsidy per copy sold will increase circulation. We end the article by summarizing empirical evidence on the effects of media support.
    Keywords: Media support; Two sided markets; VAT exemption; Tax credit; Direct and indirect subsidies
    JEL: H00 H20
    Date: 2014–12–19
  2. By: Belik, Ivan (Dept. of Business and Management Science, Norwegian School of Economics); Jörnsten, Kurt (Dept. of Business and Management Science, Norwegian School of Economics)
    Abstract: In the given research we analyse how an agent can move towards leadership in a socio-economic network. For the node’s (i.e., agent’s) importance measure we use the Shapley value (SV) concept from the area of cooperative games. We consider SV as the node’s centrality that corresponds to the significance of the agent within the socio-economic network. Using the polynomial algorithm developed by Aadithya, Ravindran, Michalak, & Jennings (2010) to compute SVs we analyze the way of creating new linkages to increase an agent’s significance (i.e., importance) in networks.
    Keywords: Socio-economic networks; Shapley value; leadership
    JEL: C00
    Date: 2015–01–09
  3. By: Jadwiga Goraczkowska (Uniwersytet Zielonogorski, Poland)
    Abstract: Currently, technological parks constitute the most organisational and conceptually developed type of innovation centres and entrepreneurship. This results in the fact that they can be encountered in all highly developed countries in the world. They are also formed in the catching-up countries. However, one should consider whether the stimulation of innovation in the countries, which are not based on knowledge through institutional solutions used in the developed countries will turn out to be effective. Because between these countries there is a technological gap. The aim of the article was therefore to determine, using the probit modelling, the direction and strength of technological parks on the innovation activity. The study covered two provinces: Silesian, which is one of the most developed regions in Poland and Pomeranian with the intermediate industrial system. The influence of technological parks on innovation was determined based on the survey conducted in 1453 industrial enterprises. The main conclusions are brought down to the following theses: (1) using the technological parks increases the chance for the implementation of new solutions by enterprises, (2) parks to a greater extent stimulate the innovation activity in the developed province, (3) enterprises entering in the cross-regional network relations favours the selection of the technological park as the catalyst for innovation processes.
    Keywords: innovation, industry, technological parks, network
    JEL: L60 O31 O32
    Date: 2014–12
  4. By: Leonardo Bargigli (Dipartimento di Scienze per l'Economia e l'Impresa); Renato Giannetti (Dipartimento di Scienze per l'Economia e l'Impresa)
    Abstract: How did business networks among Italian firms evolve over time? We address this question by analyzing the Italian corporate boards network in four years (1952, 1960, 1972, 1983) with network theoretical methods. We find some typical properties of these networks, such as sparsity and connectedness in the same large network component. At the same time, clustering and assortativity are relatively high and stable, while we observe, over time, an increase of the average distance coupled with a decrease of density and of the relative size of the largest component. This is an indication of a rarefaction of connections which is detected also in other national systems. In order to seek the determinants of this phenomenon, we perform a panel regression for the average nodal degree, finding that rarefaction is mostly related to a genuine time trend and only partially to cross-sectional variables. We argue that a possible explanation is a significant increase of concentration which we observe in our dataset, consistently with historical evidence. The network shows a substantial stability in some structures, such as core-periphery subdivision. Looking at the main actors we find a persistent centrality of banks and insurances, as well as of State Owned Enterprises (SOEs). These play a growing role in the community structure of the network, while communities themselves become more and more diversified by sector.
    Keywords: boards networks, network theory, Italian firms.
    JEL: N00 L20 C49
    Date: 2015
  5. By: Pranab Mukhopadhyay Mani Nepal Priya Shyamsundar
    Abstract: South Asia, as local and regional environment problems have grown, societal demand for new knowledge has outpaced the ability of traditional institutions to respond. In this context, we examine the experience of the South Asian Network for Development and Environmental Economics (SANDEE) as a regional research network engaged in the task of coproduction of knowledge. We argue that research networks contribute to the growth of sustainability knowledge through (a) knowledge creation, (b) knowledge transfer and (c) knowledge deepening. We use data drawn from participants in training programs to quantitatively evaluate four research outcomes and find that research support from SANDEE is associated with increased international peer-reviewed publications. We supplement the quantitative analyses with a qualitative discussion on what has sustained and made a geographic network such as SANDEE feasible. We also discuss the challenges posed by the need for interdisciplinary approaches and the reasons why there is a lag between knowledge development and governance reforms. This institutional paper, which was developed as a response to a panel discussion on knowledge networks in 2012, offers ‘insider' insights gleaned through long-term association with SANDEE.
    Keywords: Sustainability Knowledge, Research Networks, Environment and Economics, South Asia

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