Social and Behavioral Sciences Commons^™

Technology And The Global Economy, Jonathan Eaton, Samuel Kortum

Cowles Foundation Discussion Papers

Interpreting individual heterogeneity in terms of probability theory has proved powerful in connecting behaviour at the individual and aggregate levels. Returning to Ricardo's focus on comparative efficiency as a basis for international trade, much recent quantitative equilibrium modeling of the global economy builds on particular probabilistic assumptions about technology. We review these assumptions and how they deliver a unified framework underlying a wide range of static and dynamic equilibrium models.

Sustainability Practices, Policies, And Business Models Of Web-Based Innovation Platforms: Lessons Learned For The Ohio Innovation Exchange (Oiex), Iryna V. Lendel, Megan Zabik

Reports

No abstract provided.

To What Extent Do Environmental Regulations Curb Air Pollution And Enhance Production, Productivity, And Innovation?, Emmanuel Wabi Wangi

Doctoral Dissertations and Projects

This study delves into the fascinating relationship between environmental regulations, air pollution reduction, and their subsequent impact on production, productivity, and innovation. By adopting Porter’s hypothesis approach, the study aims to shed light on a crucial aspect overlooked in previous studies - the prerequisite of “well-designed environmental regulation,” as Porter’s hypothesis emphasizes. The study uses microeconomic principles, whose conclusions propose a novel framework for crafting effective policies that balance curbing air pollution and fostering economic growth. Specifically, the study advocates for a tax rate on pollution that aligns with the marginal cost of the polluter within the industry. This approach …

Building A Society Of Trust: Innovation And The Future Of Youth Employment In Jordan, Pierre Cativiela

Independent Study Project (ISP) Collection

The word startup is perhaps an unlikely word that comes to mind when discussing shifting dynamics in the Middle East – this is rapidly changing. In the past two decades, Arab entrepreneurs have emerged from across the region as key players in the paradigm of national economic visions. Within these plans, innovation will become the epicenter for public-private partnerships. Such collaboration will contribute to tackling youth unemployment, the region’s most pressing contemporary problem, as well as diversifying local economies. The research delves into the complexities and history of entrepreneurship in Jordan as one of the region’s pioneering nations, examining the …

The Rise Of Southern Nevada As A Cluster For Metropolitan Transit Technology Innovations, Arthur C. Nelson

Policy Briefs and Reports

Southern Nevada is emerging as the nation’s leader in private sector-driven innovations in transportation technologies. From the humble beginnings of a monorail system serving a portion of major hotel and gaming venues along the Las Vegas Strip, now supplemented by an array of people movers, Southern Nevada continues to attract transit innovations in tunneling, Hyperloop, and driverless vehicle delivery technologies. The region may soon anchor a high-speed rail system connecting Southern Nevada to Los Angeles. The purpose of this briefing paper is to frame the nature of this emerging transportation cluster and the opportunities this creates for Southern Nevada to …

Feeling The Heat? Fear Of Failure And Performance, Alberto Chong, Marco Chong

CSLF Working Papers

Using a new, objective measure, we study the role of fear of failure in performance and find that it is positively linked with the latter, a finding that tends to contradict the conventional wisdom in both psychology and behavioral economics. We use individual data from the nationally syndicated television show MasterChef for the years 2010 to 2020 and exploit situations in which contestants are on the verge of being dropped from competition. Using ordinary least squares, we show that extreme fear of failure is associated with an increase of two to four positions in the final placement of the competition.

Kentucky Annual Economic Report 2022, Michael W. Clark, James P. Ziliak, Simon Sheather

Kentucky Annual Economic Report

This report is one of the important ways that the Center for Business and Economic Research fulfills its mission to examine various aspects of Kentucky’s economy as directed by the Kentucky Revised Statutes (KRS 164.738). The analysis and data presented here cover a variety of topics that range from a discussion of Kentucky’s current economic climate to a broad presentation of factors affecting the economy.

The report covers numerous dimensions of Kentucky’s economy including the effects of COVID-19. As the pandemic approaches its third year, COVID-19 continues to dominate the economic narrative. Many aspects of the economy have improved substantially …

Leases As Forms, David A. Hoffman, Anton Strezhnev

All Faculty Scholarship

We offer the first large scale descriptive study of residential leases, based on a dataset of ~170,000 residential leases filed in support of over ~200,000 Philadelphia eviction proceedings from 2005 through 2019. These leases are highly likely to contain unenforceable terms, and their pro-landlord tilt has increased sharply over time. Matching leases with individual tenant characteristics, we show that unlawful terms are surprisingly likely to be associated with more expensive leaseholds in richer, whiter parts of the city. This result is linked to landlords' growing adoption of shared forms, originally created by non-profit landlord associations, and more recently available online …

Consumer Guilt And Sustainable Choice: Environmental Impact Of Durable Goods Innovation, K. Sudhir, Ramesh Shankar, Yuan Jin

Cowles Foundation Discussion Papers

The paper develops a modeling framework to study how sustainability interventions impact consumer adoption of durable goods innovation, firm profit and environmental outcomes in equilibrium. Our two period model with forward looking consumers and a monopoly firm introducing an innovation in the second period accommodates three key features: (1) it builds on the psychology literature linking reactive and anticipatory guilt to consumers’ environmental sensitivity on initial purchase and upgrade decisions; (2) it disentangles environmental harm over the product life into that arising from product use and dumping at replacement; and (3) it clarifies how a taxonomy of innovations (function, fashion …

Innovating In The Digital Economy, Arnoud De Meyer

Perspectives@SMU

It is all about creating and capturing value, building networks, and scaling up quickly

State Technology And Science Activity In The Mountain West, 2020, Katie M. Gilbertson, Peter Grema, Saha Salahi, Caitlin J. Saladino, William E. Brown Jr.

Economic Development & Workforce

This Fact Sheet summarizes the 2020 State Technology and Science Index (STSI) report by Kevin Klowden, Aaron Melaas, Charlotte Kesteven, and Sam Hanigan of the Milken Institute. STSI rankings are summarized for the five Mountain West states of Arizona, Colorado, Nevada, New Mexico, and Utah. The index is a measure of how each state performs in several key metrics for supporting a knowledge-based economy.

Exploring The Formation Mechanism Of Radical Technological Innovation: An Mlp Approach, Yun Sun, Hecheng Wang, Haiqing Yu, Yong Chen, Mikhail Yu Kataev, Ling Li

Information Technology & Decision Sciences Faculty Publications

This paper identifies three stages in the radical technological innovation process, namely formation process in niches, breaking out of niches and entering regimes, and new regime formation. It then adopts Multi-level Perspective (MLP) to explore the formation process, operating mechanism, breakthrough path, and impact factors of radical technological innovation. A three-phase model, which includes formation of radical innovation, breakout of radical innovation, and new regimes construction, is proposed to analyze radical technological innovation. The model is adopted in a case study to analyze the leapfrogging development of technologies in China’s mobile communication industry. This paper enriches technological innovation theory and …

Is The Digital Economy Too Concentrated?, Jonathan Klick

All Faculty Scholarship

Concentration in the digital economy in the United States has sparked loud criticism and spurred calls for wide-ranging reforms. These reforms include everything from increased enforcement of existing antitrust laws, such as challenging more mergers and breaking up firms, to an abandonment of the consumer welfare standard. Critics cite corruption and more systemic public choice problems, while others invoke the populist origins of antitrust to slay the digital Goliaths. On the other side, there is skepticism regarding these arguments. This chapter continues much of that skepticism.

Global Cities And Socioeconomic Inequality: A Pathways Inquiry, Herman Boschken

Faculty Publications, School of Management

Inequality in metropolitan areas is part of a paradoxical triangle of competing motives over resources allocation. Chief among inequality/equity rivals is the penchant for urban economic development, but in recent decades, ecological sustainability has also become increasingly important in this triangle. To understand inequality in global cities in such a context, one must recognize the intensity of economic development motives for those particular metropolitan areas seeking to maintain worldwide centrality, connectivity and command over the forces of globalization. As a comparative analysis of 53 large U.S. metropolitan areas, this paper examines the apparatus of a global city in response to …

Innovative Solution For Energy Supply In Rural Communities In Africa, Shilda Cardoso

English Language Institute

This research is a proposition of an innovative solution for energy supply in rural locations across Africa to stimulate social and economic growth. In the continuing unsolved problems in energy supply for rural communities across Africa, an Innovative solutions like solar energy can help change this status quo, and improve the lives of many people throughout the continent.

From Imitation To Innovation: Where Is All That Chinese R&D Going?, König D. König, Kjetil Storesletten, Zheng Song, Fabrizio Zilibotti

Cowles Foundation Discussion Papers

We construct a model of rm dynamics with heterogenous productivity and distortions. The productivity distribution evolves endogenously as the result of the decisions of firms seeking to upgrade their productivity over time. Firms can adopt two strategies toward that end: imitation and innovation. The theory bears predictions about the evolution of the productivity distribution. We structurally estimate the stationary state of the dynamic model targeting moments of the empirical distribution of R&D and TFP growth in China during the period 2007-2012. The estimated model ts the Chinese data well. We compare the estimates with those obtained using data for Taiwan …

Signs Of Digital Distress: The Mountain West, Mary Blankenship, Caitlin Saladino, William E. Brown

Transportation & Infrastructure

This Fact Sheet examines the broadband services available and their subscription rates across major metro areas in the Mountain West, using the data and analysis found in “Signs of Digital Distress,” a report by the Brookings Institution.

Technology Licensing And Innovation – A Correction On Two-Part Tariff Analysis, Yuanzhu Lu, Swapnendu Banerjee, Sougata Poddar

Economics Faculty Articles and Research

The main purpose of this note is two-fold: (i) Correcting an error in the two-part tariff licensing contract, and (ii) Altering one of the main results following the two-part tariff analysis in Mukherjee and Mukherjee (2013). This also strengthens the primary conclusion of Mukherjee and Mukherjee (2013).

Can Mergers And Acquisitions Internalize Positive Externalities In Funding Innovation?, Leo Li, Mark Liu

Institute for the Study of Free Enterprise Working Papers

Fundamental innovation usually involves huge upfront costs, but the benefits are spread across various sectors of the economy. Given the large costs and limited appropriability of the benefits associated with the innovation, individual firms underinvest in these innovations relative to the socially optimal level. We find that mergers and acquisitions (M&As) can internalize the positive externalities by merging firms from both the user industries and the producer industries of an innovation. Using the US patent citation dataset, we define the user and producer relationship between each pair of industries and between each pair of industry and technological class. We then …

An Experiment On Innovation And Collusion, Andrew Smyth

Economics Faculty Research and Publications

This paper examines the relationship between product innovation and the success of price collusion using novel laboratory experiments. Average market prices in low innovation (LO) experiments are significantly higher than those in high innovation, but otherwise identical experiments. This price difference is attributed to LO experimental subjects' greater common market experience. The data illustrate how collusion can be perceived as the "only way to make it" in LO markets where product innovation is not a viable strategy for increasing profits. They suggest that product homogeneity can be a proximate cause, and product innovation an ultimate cause, of collusion.

Disruptive Innovation: The Rise Of The Knowledge-Sharing Market In China, Yaqing Lan

International Studies Honors Projects

Innovation is a major subject of international political economy, but mainstream discussions focus on scientific research and development and detach innovation development from their social contexts. In response to this view, this project reveals the importance of cultural and social factors in influencing innovation development by examining the rise of the knowledge-sharing market (KSM) -- a social-network-site-based economy in China. It suggests the KSM is a disruptive innovation not only because it is pioneered by a latecomer in the global innovation market, China, but also because its emergence from the changing Chinese consumer demands disrupts the mainstream thinking of innovation.

The Effect Of Environmental Change On Gdp, Jackson V. Barliant

Writing Across the Curriculum

Climate change is one of the most debated topics of the 21^st century. Not only has it been detrimental to our eco-system, but it is beginning to redefine and reshape society. Can the U.S. economy continue to flourish while acknowledging the necessary steps that need to be taken in regard to combatting climate change? Yes, the inherent change within our environment due to climate change can not only be withstood by our economy, but it presents an opportunity to revolutionize and expand through innovation.

Intellectual Property And The Economics Of Product Differentiation, Christopher S. Yoo

All Faculty Scholarship

The literature applying the economics of product differentiation to intellectual property has been called the most important development in the economic analysis of IP in years. Relaxing the assumption that products are homogeneous yields new insights by explaining persistent features of IP markets that the traditional approaches cannot, challenging the extent to which IP allows rightsholders to earn monopoly profits, allowing for sources of welfare outside of price-quantity space, which in turn opens up new dimensions along which intellectual property can compete. It also allows for equilibria with different welfare characteristics, making the tendency towards systematic underproduction more contingent and …

Startup Governance, Elizabeth Pollman

All Faculty Scholarship

Although previously considered rare, over three hundred startups have reached valuations over a billion dollars. Thousands of smaller startups aim to follow in their paths. Despite the enormous social and economic impact of venture-backed startups, their internal governance receives scant scholarly attention. Longstanding theories of corporate ownership and governance do not capture the special features of startups. They can grow large with ownership shared by diverse participants, and they face issues that do not fit the dominant principal-agent paradigm of public corporations or the classic narrative of controlling shareholders in closely held corporations.

This Article offers an original, comprehensive framework …

Innovation, Firm Size Distribution, And Gains From Trade, Yi-Fan Chen, Wen-Tai Hsu, Shin-Kun Peng

Research Collection School Of Economics

We study a trade model with monopolistic competition a la Melitz (2003) that is standard except that firm heterogeneity is endogenously determined by firms innovating to enhance their productivities. We show that the equilibrium productivity and firm-size distributions exhibit power-law tails under rather general conditions on demand and technology. In particular, the emergence of the power laws is essentially independent of the underlying primitive heterogeneity among firms. We investigate the model’s welfare implications, and conduct a quantitative analysis of welfare gains from trade. We find that, conditional on the same trade elasticity and values of the common parameters, our model …

Propensity To Patent And Firm Size For Small R&D-Intensive Firms, Albert N. Link, John T. Scott

Dartmouth Scholarship

The Schumpeterian hypothesis about the effect of firm size on research and development (R&D) output is studied for a sample of R&D projects for R&D-intensive firms that are small but have substantial variance in their sizes. Across the distribution of firm sizes, the elasticity of patenting with respect to R&D ranged from 0.41 to 0.55, with the elasticities being largest for intermediate levels of firm size and also varying directly with the extent to which the projects are Schumpeterian in the cost or value senses. The paper’s findings at the R&D project level are compared with the literature’s findings at …

Antitrust And The Design Of Production, Herbert J. Hovenkamp

All Faculty Scholarship

Both economics and antitrust policy have traditionally distinguished “production” from “distribution.” The former is concerned with how products are designed and built, the latter with how they are placed into the hands of consumers. Nothing in the language of the antitrust laws suggests much concern with production as such. Although courts do not view it that way, even per se unlawful naked price fixing among rivals is a restraint on distribution rather than production. Naked price fixing assumes a product that has already been designed and built, and the important cartel decision is what should be each firm’s output, or …

Three Essays On The Theory Of Money And Financial Institutions Essay 3: The Economy With Innovation, Externalities And Context, Martin Shubik

Cowles Foundation Discussion Papers

This essay is the third of three. The first is nontechnical and in part autobiograhpical describing the evolution of my approach to developing a microeconomic theory of money and.financial institutions. The second essay was devoted to a more formal sketch of a closed economic exchange system with no other externalities beyond money and markets. This essay builds on the existence of monetary exchange but also context, and active government with nonsymmetric information and many externaties indicate that the views of Keynes, Hayek and Schumpeter are all consistent with the next stages of complexity as the logic requires many different arrays …

Patent Pools And Related Technology Sharing, Erik Hovenkamp, Herbert J. Hovenkamp

All Faculty Scholarship

A patent "pool" is an arrangement under which patent holders in a common technology commit their patents to a single holder, who then licenses them out to the original patentees and perhaps also to outsiders. The payoffs include both revenue earned as a licensor, and technology acquired by pool members as licensees. Public effects can also be significant. For example, technology sharing of complementary patents can improve product quality and variety. In some information technology markets pools can prevent patents from becoming a costly obstacle to innovation by clearing channels of technology transfer. By contrast, a pool's aggregate output reduction …

Creativity For Invention Insights: Corporate Strategies And Opportunities For Public Entrepreneurship, John T. Scott

Dartmouth Scholarship

This paper introduces and describes the invention-insight sample space and uses it to describe the creative process of discovering invention insights—the essential combinations of elements of knowledge to envision the basic working configurations of inventions, the working ideas for new technologies. Evidence about invention insights and about corporate strategies to promote them is viewed in the context of the paper’s description of the invention-insight discovery process. Then that description is used (1) to identify a novel new opportunity—initiation of policies to stimulate invention insights that directly combine unusually large numbers of knowledge elements—for public sector entrepreneurship to speed the pace …