nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2006‒09‒16
three papers chosen by
Karl Petrick
Leeds Metropolitan University

  1. Currents and Sub-currents in the River of Innovations - Explaining Innovativeness using New-Product Announcements By Dolfsma, W.; Panne, G. van der
  2. Diversification at financial institutions and systemic crises By Wagner,Wolf
  3. A Matter of Opinion : How Ecological and Neoclassical Environmental Economists Think about Sustainability and Economics By Lydia Illge; Reimund Schwarze

  1. By: Dolfsma, W.; Panne, G. van der (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: In their seminal paper, Acs and Audretsch (1988) analyze innovation patterns across industries and identify several determinants of innovativeness, both positive and negative. Their work is seminal if only because of the unique data they use to measure innovativeness: new-product announcements. They show that industry concentration, degree of unionization would hamper innovation; industries characterized by increased shares of skilled labor and large firms provide favorable conditions for innovation. By analyzing a new and more consciously compiled database, we re-examine their original claims. Our results largely support the findings of Acs & Audretsch, but diverge from them in one important way. We suggest that the large firms do not contribute more to a industry?s innovativeness than small firms ? a vindication of the Schumpeter Mark I perspective. In addition, we analyze micro-level data of individual firms. Firms within different sub-groups respond differently to their competitive environment. We show that less dedicated innovators prove more susceptible to environmental factors than more committed innovators. In addition, an unfavorable competitive environment decreases the likelihood that less successful innovators will announce new products.
    Keywords: Innovation;New-Product Announcements;Innovation Sub-Currents;Schumpeter Mark I;
    Date: 2006–09–06
  2. By: Wagner,Wolf (Tilburg University, Center for Economic Research)
    Abstract: We show that the diversification of risks at financial institutions has unwelcome effects by increasing the likelihood of systems crises. As a result, complete diversification is not warranted adn the optimal degree of diversification is arbitrarily low. We also identify externalities that cause financial institutions to diversify beyond diversification may thus have reduced welfare.
    Keywords: diversification;financial consolidation;conglomeration;securitization;system risk
    JEL: G21 G28
    Date: 2006
  3. By: Lydia Illge; Reimund Schwarze
    Abstract: The differing paradigms of ecological and neoclassical environmental economics have been described in various articles and books and are also embedded in different institutional settings. However, we cannot take for granted that the paradigm debates described in the literatu-re are actually mirrored in exactly the same way in the perceptions and opinions of researchers looking at sustainability from an economic perspective. This paper presents empirical results from a German case study on how economists and others involved in economic sustainability research from different schools of thought think about the issues of sustainability and economics, how they group around these issues, how they feel about the current scientific divide, and what they expect to be future topics of sustainability research. Knowing that sustainability research is highly and still increasingly internationally intertwined, and assuming that the opinions of German economic sustainability researchers do not dramatically differ from those in other countries, we think that these results will be of interest to the inter-national scientific community [...]
    Date: 2006

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