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Showing papers in "Research Papers in Economics in 2006"


Journal Article
TL;DR: Open Innovation: A Paradigm for Understanding Industrial Innovation as mentioned in this paper is a new paradigm for understanding industrial innovation, and the use of university research in firm innovation has been shown to support open innovation.
Abstract: 1 Open Innovation: A New Paradigm for Understanding Industrial Innovation SECTION I: FIRMS IMPLEMENTING OPEN INNOVATION 2 New Puzzles and New Findings 3 Whither Core Competency for the Large Corporation in an Open Innovation World? 4 Open, Radical Innovation: Toward an Integrated Model in Large Established Firms 5 Patterns of Open Innovation in Open Source Software SECTION II: INSTITUTIONS GOVERNING OPEN INNOVATION 6 Does Appropriability Enable or Retard Open Innovation? 7 The Use of University Research in Firm Innovation 8 Open Standards and Intellectual Property Rights 9 The Use of Intellectual Property in Software: Implications for Open Innovation SECTION III: NETWORKS SHAPING OPEN INNOVATION 10 The Inter-organizational Context of Open Innovation 11 Knowledge Networks and the Geographic Locus of Innovation 12 Open Innovation in Systemic Innovation Contexts 13 Open Innovation in Value Networks SECTION IV: CONCLUSIONS 14 Open Innovation: A Research Agenda

3,267 citations


Posted Content
TL;DR: The Oxford Handbook of Innovation as mentioned in this paper provides a comprehensive and holistic understanding of the phenomenon of innovation, with a focus on firms and networks, and the consequences of innovation with respect to economic growth, international competitiveness, and employment.
Abstract: This handbook looks to provide academics and students with a comprehensive and holistic understanding of the phenomenon of innovation. Innovation spans a number of fields within the social sciences and humanities: Management, Economics, Geography, Sociology, Politics, Psychology, and History. Consequently, the rapidly increasing body of literature on innovation is characterized by a multitude of perspectives based on, or cutting across, existing disciplines and specializations. Scholars of innovation can come from such diverse starting points that much of this literature can be missed, and so constructive dialogues missed. The editors of The Oxford Handbook of Innovation have carefully selected and designed twenty-one contributions from leading academic experts within their particular field, each focusing on a specific aspect of innovation. These have been organized into four main sections, the first of which looks at the creation of innovations, with particular focus on firms and networks. Section Two provides an account of the wider systematic setting influencing innovation and the role of institutions and organizations in this context. Section Three explores some of the diversity in the working of innovation over time and across different sectors of the economy, and Section Four focuses on the consequences of innovation with respect to economic growth, international competitiveness, and employment. An introductory overview, concluding remarks, and guide to further reading for each chapter, make this handbook a key introduction and vital reference work for researchers, academics, and advanced students of innovation. Contributors to this volume - Jan Fagerberg, University of Oslo William Lazonick, INSEAD Walter W. Powell, Stanford University Keith Pavitt, SPRU Alice Lam, Brunel University Keith Smith, INTECH Charles Edquist, Linkoping David Mowery, University of California, Berkeley Mary O'Sullivan, INSEAD Ove Granstrand, Chalmers Bjorn Asheim, University of Lund Rajneesh Narula, Copenhagen Business School Antonello Zanfei, Urbino Kristine Bruland, University of Oslo Franco Malerba, University of Bocconi Nick Von Tunzelmann, SPRU Ian Miles, University of Manchester Bronwyn Hall, University of California, Berkeley Bart Verspagen , ECIS Francisco Louca, ISEG Manuel M. Godinho, ISEG Richard R. Nelson, Mario Pianta, Urbino Bengt-Ake Lundvall, Aalborg

3,040 citations


Posted Content
TL;DR: In this paper, a low-dimensional vector of cognitive and non-cognitive skills explains a variety of labor market and behavioral outcomes, such as teenage pregnancy and marriage, smoking, marijuana use, and participation in illegal activities.
Abstract: This paper establishes that a low dimensional vector of cognitive and noncognitive skills explains a variety of labor market and behavioral outcomes. For many dimensions of social performance cognitive and noncognitive skills are equally important. Our analysis addresses the problems of measurement error, imperfect proxies, and reverse causality that plague conventional studies of cognitive and noncognitive skills that regress earnings (and other outcomes) on proxies for skills. Noncognitive skills strongly influence schooling decisions, and also affect wages given schooling decisions. Schooling, employment, work experience and choice of occupation are affected by latent noncognitive and cognitive skills. We study a variety of correlated risky behaviors such as teenage pregnancy and marriage, smoking, marijuana use, and participation in illegal activities. The same low dimensional vector of abilities that explains schooling choices, wages, employment, work experience and choice of occupation explains these behavioral outcomes.

1,311 citations


Posted Content
TL;DR: The Theory of Corporate Finance as mentioned in this paper is an indispensable resource for graduate and advanced undergraduate students as well as researchers of corporate finance, industrial organization, political economy, development, and macroeconomics.
Abstract: The past twenty years have seen great theoretical and empirical advances in the field of corporate finance. Whereas once the subject addressed mainly the financing of corporations--equity, debt, and valuation--today it also embraces crucial issues of governance, liquidity, risk management, relationships between banks and corporations, and the macroeconomic impact of corporations. However, this progress has left in its wake a jumbled array of concepts and models that students are often hard put to make sense of. Here, one of the world's leading economists offers a lucid, unified, and comprehensive introduction to modern corporate finance theory. Jean Tirole builds his landmark book around a single model, using an incentive or contract theory approach. Filling a major gap in the field, The Theory of Corporate Finance is an indispensable resource for graduate and advanced undergraduate students as well as researchers of corporate finance, industrial organization, political economy, development, and macroeconomics. Tirole conveys the organizing principles that structure the analysis of today's key management and public policy issues, such as the reform of corporate governance and auditing; the role of private equity, financial markets, and takeovers; the efficient determination of leverage, dividends, liquidity, and risk management; and the design of managerial incentive packages. He weaves empirical studies into the book's theoretical analysis. And he places the corporation in its broader environment, both microeconomic and macroeconomic, and examines the two-way interaction between the corporate environment and institutions. Setting a new milestone in the field, The Theory of Corporate Finance will be the authoritative text for years to come.

1,271 citations


Posted Content
TL;DR: This article showed that higher uncertainty reduces the impact of demand shocks on investment, and that firms are more cautious when investing or disinvesting when dealing with high uncertainty, such as after major shocks like OPEC I and 9/11.
Abstract: This paper shows that, with (partial) irreversibility, higher uncertainty reduces the impact effect of demand shocks on investment. Uncertainty increases real option values making firms more cautious when investing or disinvesting. This is confirmed both numerically for a model with a rich mix of adjustment costs, time-varying uncertainty, and aggregation over investment decisions and time, and also empirically for a panel of manufacturing firms. These cautionary effects of uncertainty are large - going from the lower quartile to the upper quartile of the uncertainty distribution typically halves the first year investment response to demand shocks. This implies the responsiveness of firms to any given policy stimulus may be much lower in periods of high uncertainty, such as after major shocks like OPEC I and 9/11.

1,024 citations


Posted Content
TL;DR: Nonparametric Econometrics as discussed by the authors is an excellent introduction to nonparametric and semiparametric methods for economic analysis. But it does not address the problem of dealing with the presence of discrete variables.
Abstract: Until recently, students and researchers in nonparametric and semiparametric statistics and econometrics have had to turn to the latest journal articles to keep pace with these emerging methods of economic analysis. Nonparametric Econometrics fills a major gap by gathering together the most up-to-date theory and techniques and presenting them in a remarkably straightforward and accessible format. The empirical tests, data, and exercises included in this textbook help make it the ideal introduction for graduate students and an indispensable resource for researchers. Nonparametric and semiparametric methods have attracted a great deal of attention from statisticians in recent decades. While the majority of existing books on the subject operate from the presumption that the underlying data is strictly continuous in nature, more often than not social scientists deal with categorical data--nominal and ordinal--in applied settings. The conventional nonparametric approach to dealing with the presence of discrete variables is acknowledged to be unsatisfactory. This book is tailored to the needs of applied econometricians and social scientists. Qi Li and Jeffrey Racine emphasize nonparametric techniques suited to the rich array of data types--continuous, nominal, and ordinal--within one coherent framework. They also emphasize the properties of nonparametric estimators in the presence of potentially irrelevant variables. Nonparametric Econometrics covers all the material necessary to understand and apply nonparametric methods for real-world problems.

1,005 citations


Posted Content
TL;DR: In this article, the authors discuss the performativity of economics and propose theoretical directions to study it from a sociological perspective, and discuss the performance of economics from a social point of view.
Abstract: (Discusses the performativity of economics and proposes theoretical directions to study it from a sociological perspective.)

990 citations


Posted Content
TL;DR: In this paper, the authors proposed a framework based on the theory of planned behaviour (TPB) to evaluate the design of entrepreneurship education programs (EEP) and the increasing resources allocated.
Abstract: Purpose – Facing the multiplication of entrepreneurship education programmes (EEP) and the increasing resources allocated, there is a need to develop a common framework to evaluate the design of those programmes. The purpose of this article is to propose such a framework, based on the theory of planned behaviour (TPB). Design/methodology/approach – TPB is a relevant tool to model the development of entrepreneurial intention through pedagogical processes. The independent variables are the characteristics of the EEP and the dependent variables are the antecedents of entrepreneurial behaviour. To illustrate and test the relevance of the evaluation methodology, a pilot study is conducted. Findings – Data are consistent and reliable, considering the small scale of this experiment. The EEP assessed had a strong measurable impact on the entrepreneurial intention of the students, while it had a positive, but not very significant, impact on their perceived behavioural control. Research implications/limitations – This is a first step of an ambitious research programme aiming at producing theory-grounded knowledge. Reproduction of the experiment will allow researchers to test how specific characteristics of an EEP influence its impact and how the impact differs across several cohorts of students. Those comparisons will serve to improve a priori the design of EEP. Originality/value – The new methodology is built on a robust theoretical framework and based on validated measurement tools. Its originality is about a relative – longitudinal – measure of impact over time and a particular use of the theory of planned behaviour which is seen as an assessment framework.

873 citations


Posted Content
Dean Yang1
TL;DR: In this paper, the authors examined Philippine households' responses to overseas members' economic shocks and found that these positive income shocks lead to enhanced human capital accumulation and entrepreneurship in migrants' origin households.
Abstract: Millions of households in developing countries receive financial support from family members working overseas How do migrant earnings affect origin-household investments? This paper examines Philippine households%u2019 responses to overseas members%u2019 economic shocks Overseas Filipinos work in dozens of foreign countries, which experienced sudden (and heterogeneous) changes in exchange rates due to the 1997 Asian financial crisis Appreciation of a migrant%u2019s currency against the Philippine peso leads to increases in household remittances received from overseas The estimated elasticity of Philippine-peso remittances with respect to the Philippine/foreign exchange rate is 060 These positive income shocks lead to enhanced human capital accumulation and entrepreneurship in migrants%u2019 origin households Child schooling and educational expenditure rise, while child labor falls In the area of entrepreneurship, households raise hours worked in self-employment, and become more likely to start relatively capital-intensive household enterprises

864 citations


Posted Content
TL;DR: In this paper, the authors argue that much more than comparative advantage and free markets have been at play in shaping China's export success, and that what matters for China's future growth is not the volume of exports, but whether China will continue to latch on to higher-income products over time.
Abstract: Much more than comparative advantage and free markets have been at play in shaping China's export success Government policies have helped nurture domestic capabilities in consumer electronics and other advanced areas that would most likely not have developed in their absence As a result, China has ended up with an export basket that is significantly more sophisticated than what would be normally expected for a country at its income level This has been an important determinant of China's rapid growth What matters for China's future growth is not the volume of exports, but whether China will continue to latch on to higher-income products over time

830 citations


Posted Content
TL;DR: In this article, the authors evaluate more accurate measures of fatness (total body fat, percent body fat and waist circumference) that have greater theoretical support in the medical literature and provide conversion formulas based on NHANES data so that researchers can calculate the estimated values of these more accurate features using the self-reported weight and height available in many social science datasets.
Abstract: Virtually all social science research related to obesity uses body mass index (BMI), usually calculated using self-reported values of weight and height, or clinical weight classifications based on BMI. Yet there is wide agreement in the medical literature that such measures are seriously flawed because they do not distinguish fat from fat-free mass such as muscle and bone. Here we evaluate more accurate measures of fatness (total body fat, percent body fat, and waist circumference) that have greater theoretical support in the medical literature. We provide conversion formulas based on NHANES data so that researchers can calculate the estimated values of these more accurate measures of fatness using the self-reported weight and height available in many social science datasets. To demonstrate the benefits of these alternative measures of fatness, we show that using them significantly impacts who is classified as obese. For example, when the more accurate measures of fatness are used, the gap in obesity between white and African American men increases substantially, with white men significantly more likely to be obese. In addition, the gap in obesity between African American and white women is cut in half (with African American women still significantly more likely to be obese). As an example of the value of fatness in predicting social science outcomes, we show that while BMI is positively correlated with the probability of employment disability in the PSID, when body mass is divided into its components, fatness is positively correlated with disability while fat-free mass (such as muscle) is negatively correlated with disability.

Posted Content
TL;DR: In this paper, the authors present a practical guide for researchers, students and practitioners wishing to introduce randomization as part of a research design in the field, including the rationale for the use of randomization, as a solution to selection bias and a partial solution to publication biases.
Abstract: This paper is a practical guide (a toolkit) for researchers, students and practitioners wishing to introduce randomization as part of a research design in the field. It first covers the rationale for the use of randomization, as a solution to selection bias and a partial solution to publication biases. Second, it discusses various ways in which randomization can be practically introduced in a field settings. Third, it discusses designs issues such as sample size requirements, stratification, level of randomization and data collection methods. Fourth, it discusses how to analyze data from randomized evaluations when there are departures from the basic framework. It reviews in particular how to handle imperfect compliance and externalities. Finally, it discusses some of the issues involved in drawing general conclusions from randomized evaluations, including the necessary use of theory as a guide when designing evaluations and interpreting results.

BookDOI
TL;DR: This second edition of Disease Control Priorities in Developing Countries (DCP2) seeks to update and improve guidance on the what-to-do questions in DCP1 and to address the institutional, organizational, financial, and research capacities essential for health systems to deliver the right interventions.
Abstract: This is the second edition of the original 1993 publication on public health. The purpose of this book is to provide information about what works, specifically, the cost-effectiveness of health interventions in a variety of settings. Such information should influence the redesign of programs and the reallocation of resources, thereby helping to achieve the ultimate goal of reducing morbidity and mortality. As was the case with the first edition, this second edition of will serve an array of audiences. This second edition of Disease Control Priorities in Developing Countries (DCP2) seeks to update and improve guidance on the what-to-do questions in DCP1 and to address the institutional, organizational, financial, and research capacities essential for health systems to deliver the right interventions. DCP2 is the principal product of the Disease Control Priorities Project, an alliance of organizations designed to review, generate, and disseminate information on how to improve population health in developing countries. In addition to DCP2, the project produced numerous background papers, an extensive range of interactive consultations held around the world, and several additional major publications.

Posted Content
TL;DR: This paper examines the properties of instrumental variables applied to models with essential heterogeneity, that is, models where responses to interventions are heterogeneous and agents adopt treatments (participate in programs) with at least partial knowledge of their idiosyncratic response.
Abstract: This paper examines the properties of instrumental variables (IV) applied to models with essential heterogeneity, that is, models where responses to interventions are heterogeneous and agents adopt treatments (participate in programs) with at least partial knowledge of their idiosyncratic response. We analyze two-outcome and multiple-outcome models including ordered and unordered choice models. We allow for transition-specific and general instruments. We generalize previous analyses by developing weights for treatment effects for general instruments. We develop a simple test for the presence of essential heterogeneity. We note the asymmetry of the model of essential heterogeneity: outcomes of choices are heterogeneous in a general way; choices are not. When both choices and outcomes are permitted to be symmetrically heterogeneous, the method of IV breaks down for estimating treatment parameters.

Posted Content
TL;DR: This article reviewed the explanatory power of various sustainability indices applied in policy practice and showed that these indices fail to fulfill fundamental scientific requirements making them rather useless if not misleading with respect to policy advice.
Abstract: Sustainability indices for countries provide a one-dimensional metric to valuate country-specific information on the three dimensions of sustainable development: economic, environmental, and social conditions. At the policy level, they suggest an unambiguous yardstick against which a country?s development can be measured and even a cross-country comparison can be performed. This paper reviews the explanatory power of various sustainability indices applied in policy practice. We show that these indices fail to fulfill fundamental scientific requirements making them rather useless if not misleading with respect to policy advice.

Posted Content
TL;DR: The authors derive necessary and sufficient conditions on functional form of the loss function for the ranking of competing volatility forecasts to be robust to the presence of noise in the volatility proxy, and derive some interesting special cases of this class of robust loss functions.
Abstract: The use of a conditionally unbiased, but imperfect, volatility proxy can lead to undesirable outcomes in standard methods for comparing conditional variance forecasts. We derive necessary and sufficient conditions on functional form of the loss function for the ranking of competing volatility forecasts to be robust to the presence of noise in the volatility proxy, and derive some interesting special cases of this class of “robust” loss functions. We motivate the theory with analytical results on the distortions caused by some widely-used loss functions, when used with standard volatility proxies such as squared returns, the intra-daily range or realised volatility. The methods are illustrated with an application to the volatility of returns on IBM over the period 1993 to 2003.

Journal Article
TL;DR: In this paper, the authors discuss the role of voters, candidates, and pressure groups in the democratic process of the United States, including the involvement of the legislative body, the president, the bureaus, and the courts.
Abstract: I. VOTERS, CANDIDATES, AND PRESSURE GROUPS II. LEGISLATIVE BODIES III. INTERACTION OF THE LEGISLATURE, PRESIDENT, BUREAUCRACY AND THE COURTS IV. CONSTITUTIONAL THEORY V. SOCIAL CHOICE VI. PUBLIC FINANCE AND PUBLIC ECONOMICS VII. POLITICS AND MACROECONOMICS VIII. DEMOCRACY AND CAPITALISM IX. HISTORICAL AND COMPARATIVE DEVELOPMENT AND NON-DEMOCRATIC REGIMES X. INTERNATIONAL POLITICAL ECONOMY XI. INTERNATIONAL RELATIONS AND CONFLICT XII. METHODOLOGICAL ISSUES XIII. OLD & NEW

Posted Content
TL;DR: An Introduction to Modern Econometrics Using Stata, by Christopher F. Baum, successfully bridges the gap between learning econometric and learning how to use Stata as mentioned in this paper.
Abstract: An Introduction to Modern Econometrics Using Stata, by Christopher F. Baum, successfully bridges the gap between learning econometrics and learning how to use Stata. The book presents a contemporary approach to econometrics, emphasizing the role of method-of-moments estimators, hypothesis testing, and specification analysis while providing practical examples showing how the theory is applied to real datasets using Stata.

Book ChapterDOI
TL;DR: In this article, three methods of measuring technical efficiency are defined, and their results compared in an application to Belgian postal data, and they conclude with an estimated average labor-efficiency of about 90%.
Abstract: Three methods of measuring technical efficiency are defined, and their results compared in an application to Belgian postal data. The first one is that of adjusting a Cobb-Douglas production frontier; the second is that of computing the convex hull of the data, a la Farrell; the third one is developed on the basis of the sole assumptions of input and output disposability. We conclude with an estimated average labor-efficiency of about 90%.

Posted Content
TL;DR: In this article, the authors explored the relationship value as a key constituent of relationship quality, i.e., commitment, satisfaction, and trust, and found that relationship value is an antecedent to relationship quality and behavioural outcomes in the nomological network of relationship marketing.
Abstract: Purpose – Established models of buyer-seller relationships do not reflect managerial emphasis on supplier performance evaluation when modelling business relationships. Proposes that relationship value should be included as a key constituent in such models. Aims to explore the construct's links with key constituents of relationship quality, i.e. commitment, satisfaction, and trust. Design/methodology/approach – A two-stage research design was used. First, depth-interviews were conducted with ten senior-level purchasing managers in US manufacturing companies. Second, data were gathered in a nation-wide mail survey among 400 purchasing professionals. Findings – The findings suggest that relationship value is an antecedent to relationship quality and behavioural outcomes in the nomological network of relationship marketing. Value displays a stronger impact on satisfaction than on commitment and trust. Value also directly impacts a customer's intention to expand business with a supplier. In turn, its impact on the propensity to leave a relationship is mediated by relationship quality. Contrary to previous research, trust does not appear in this study as an antecedent of behavioural outcomes, but as a mediator of the satisfaction-commitment link. Research limitations/implications – Confirms the role of value as a key relationship building-block. Researchers should integrate this cognitive performance-based construct in models of business relationships. Limitations and research directions refer to the sampling procedure, the need to include the supplier's value perceptions, the possibility of conducting longitudinal research, and the opportunity to assess additional moderating variables. Practical implications – When the goal is to increase business with an existing customer, managers should focus on relationship value. In turn, when managers are concerned with the risk of customers leaving a relationship, they should focus on relationship quality. Trust appears as an important ingredient in stabilising existing business relationships. Originality/value – Stresses the pivotal role of relationship value in marketing. Contributes to a better fit between relationship marketing models and managerial practice in business markets.

Posted Content
TL;DR: The GLOBE research program expanded the Hofstede model of five dimensions of national cultures to 18 as discussed by the authors, including individualism, uncertainty avoidance, individualism and long-term orientation.
Abstract: The GLOBE research program expanded the Hofstede model of five dimensions of national cultures to 18. A re-analysis based on GLOBE's 2004 summary book produced five meta-factors. One was significantly correlated with GNP/capita and, from the Hofstede dimensions, primarily with Power Distance. Three more correlated significantly with Hofstede's Individualism, Uncertainty Avoidance and Long-Term Orientation. The fifth included the few GLOBE questions that related to Hofstede's dimension of Masculinity versus Femininity. GLOBE's respondents’ minds classified the questions in a way that the researchers’ minds did not account for and which closely resembles the original Hofstede model.


Posted Content
TL;DR: This paper used a pooled time series of British cross-sectional micro data on male wages and employment from the mid 1970s to the mid-2000s to show that immigration has primarily reduced the wages of immigrants, and in particular of university educated immigrants, with little discernable effect on the native-born.
Abstract: Immigration to the UK, particularly among more educated workers, has risen appreciably over the past 30 years and as such has raised labor supply. However studies of the impact of immigration have failed to find any significant effect on the wages of native-born workers in the UK. This is potentially puzzling since there is evidence that changes in the supply of educated natives have significant effects on their wages. Using a pooled time series of British crosssectional micro data on male wages and employment from the mid-1970s to the mid-2000s, this paper offers a resolution to this puzzle, namely that in the UK natives and foreign born workers are imperfect substitutes. We show that immigration has primarily reduced the wages of immigrants - and in particular of university educated immigrants - with little discernable effect on the wages of the native-born.

Posted Content
TL;DR: In this paper, the potential advantages and disadvantages of agent-based Computational Economics (ACE) for the study of economic systems are explored using ACE model of a two-sector decentralized market economy and an ongoing ACE project on the testing of market designs for restructured wholesale power markets.
Abstract: This talk will explore the potential advantages and disadvantages of Agent-based Computational Economics (ACE) for the study of economic systems. General points will be concretely illustrated using an ACE model of a two-sector decentralized market economy and an ongoing ACE project on the testing of market designs for restructured wholesale power markets. Six issues will be highlighted: constructive understanding of production, pricing, and trade processes; the essential primacy of survival; strategic rivalry and market power; behavioral uncertainty and learning; the role of conventions and organizations; and the complex interactions among structural attributes, behaviors, and institutional arrangements

Posted Content
TL;DR: In this paper, the authors investigated the effects of license raj on registered manufacturing output, employment, entry and investment in Indian states and found that industries located in states with pro-employer labor market institutions grew more quickly than those in pro-worker environments.
Abstract: This paper investigates whether the effects, on registered manufacturing out-put,employment, entry and investment, of dismantling the 'license raj' - a system of centralcontrols regulating entry and production activity in this sector - vary across Indian stateswith different labor market regulations. The effects are found to be unequal depending onthe institutional environment in which industries are embedded. In particular, followingdelicensing, industries located in states with pro-employer labor market institutions grewmore quickly than those in pro-worker environments. Our results emphasize how localinstitutions matter for whether industry in a region benefits or is harmed by thenationwide delicensing reform.

Journal Article
TL;DR: A survey of the theoretical literature on the economic analysis of social transfers can be found in this paper, where the authors present a taxonomy of the economic models of family transfers, including the economic model of family tranfers.
Abstract: Preface. Part II: Family transfers. 13. Microeconomic models of family transfers (A. Laferrere, F-C. Wolff). 14. Altruism, exchange or indirect reciprocity: what do the data on family tranfers show? (L. Arrondel, A.Masson). 15. Intergenerational altruism and neoclassical growth models (P. Michel, E. Thibault, J-P. Vidal). 16. Wealth transfer taxation: A survey of the theoretical litterature (H. Cremer, P. Pestieau). 17. The economics of migrants remittances (F. Docquier, H. Rapoport). Part III: Third sector and labor. 18. Philanthropy (J. Andreoni). 19. Donative nonprofit organizations (M. Bilodeau, R.S. Steinberg). 20. The economics of organ transplantation (E.D. Thorne). 21. Altruism, reciprocity and cooperation in the workplace (J.J. Rotemberg). 22. Reciprocity, altruism and cooperative production (L. Putterman). Part IV: The political economy of voluntary transfers. 23. Strong reciprocity and the welfare state (C. Fong, S. Bowles, H.Gintis). 24. Selfishness, altruism and normative principles in the economic analysis of social transfers (D. Blanchet, M. Fleurbaey). 25. The political economy of intergenerational cooperation (A. Cigno). 26. The economics of international aid (R. Kanbur).

Posted Content
TL;DR: This paper analyzed the role that two psychological attributes, sensation seeking and overconfidence, play in the tendency of investors to trade stocks and found that overconfident investors and those investors most prone to sensation seeking trade more frequently.
Abstract: This study analyzes the role that two psychological attributes%u2014sensation seeking and overconfidence%u2014play in the tendency of investors to trade stocks Equity trading data are combined with data from an investor%u2019s tax filings, driving record, and psychological profile We use the data to construct measures of overconfidence and sensation seeking tendencies Controlling for a host of variables, including wealth, income, age, number of stocks owned, marital status, and occupation, we find that overconfident investors and those investors most prone to sensation seeking trade more frequently

Posted Content
TL;DR: In this article, a new model of multi-product firms and flexible manufacturing is presented and its implications in partial and general equilibrium are explored in the presence of single product firms and in heterogeneous industries.
Abstract: We present a new model of multi-product firms (MPFs) and flexible manufacturing and explore its implications in partial and general equilibrium. International trade integration affects the scale and scope of MPFs through a competition effect and a demand effect. We demonstrate how MPFs adjust in the presence of single-product firms and in heterogeneous industries. Our results are in line with recent empirical evidence and suggest that MPFs in conjunction with flexible manufacturing play an important role in the impact of international trade on product diversity.

Report SeriesDOI
TL;DR: In this article, a new set of indicators that measure differences in the regulation of non-manufacturing sectors of OECD countries over the past three decades is presented. But the indicators focus on regulations that affect competitive pressures in areas where competition is economically viable and on the potential costs that these regulations entail for economic activities that use the output of regulated sectors as intermediate inputs in production.
Abstract: Product market regulation in the non-manufacturing sectors of OECD countries: measurement and highlights This paper describes a new set of indicators that measure differences in the regulation of non-manufacturing sectors of OECD countries over the past three decades. The indicators focus on regulations that affect competitive pressures in areas where competition is economically viable and on the potential costs that these regulations entail for economic activities that use the output of regulated sectors as intermediate inputs in production. The paper illustrates the methodology used to compute the indicators and the patterns of product market regulation and regulatory reform that emerge from the analysis. The robustness of results is assessed in three ways: comparing the indicators to other available data covering the same areas; computing confidence intervals around the indicator values; and listing econometric results obtained by linking the indicators to measures of competition and economic performance.

Posted Content
TL;DR: In this article, the authors develop and apply to data on U.S. corporations from 1979-2004, tests of the standard doubly-stochastic assumption under which firms' fault times are correlated only as implied by the correlation of factors determining their default intensities.
Abstract: We develop, and apply to data on U.S. corporations from 1979-2004, tests of the standard doubly-stochastic assumption under which firms'default times are correlated only as implied by the correlation of factors determining their default intensities. This assumption is violated in the presence of contagion or "frailty" (unobservable explanatory variables that are correlated across firms). Our tests do not depend on the time-series properties of default intensities. The data do not support the joint hypothesis of well specified default intensities and the doubly-stochastic assumption. There is also some evidence of default clustering in excess of that implied by the doubly-stochastic model with the given intensities.