Open AccessPosted Content
Wrongful Discharge Laws and Innovation
TLDR
The authors show that wrongful discharge laws, particularly those that prohibit employers from acting in bad faith ex post, limit employers' ability to hold up innovating employees after the innovation is successful by reducing the possibility of hold-up.Abstract:
We show that wrongful discharge laws - laws that protect employees against unjust dismissal - spur innovation and new firm creation Wrongful discharge laws, particularly those that prohibit employers from acting in bad faith ex post, limit employers' ability to hold up innovating employees after the innovation is successful By reducing the possibility of hold-up, these laws enhance employees' innovative efforts and encourage firms to invest in risky, but potentially mould-breaking, projects We develop a model and provide supporting empirical evidence of this effect using the staggered adoption of wrongful discharge laws across the US statesread more
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Financial Development and Innovation: Cross-Country Evidence
Po-Hsuan Hsu,Xuan Tian,Yan Xu +2 more
TL;DR: In this article, the authors examine how financial market development affects technological innovation and identify economic mechanisms through which the development of equity markets and credit markets affect technological innovation using a large data set that includes 32 developed and emerging countries and a fixed effects identification strategy.
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Tolerance for Failure and Corporate Innovation
Xuan Tian,Tracy Yue Wang +1 more
TL;DR: In this article, the authors examine whether tolerance for failure spurs corporate innovation based on a sample of venture capital (VC) backed IPO firms and develop a novel measure of VC investors' failure tolerance by examining their tendency to continue investing in a venture conditional on the venture not meeting milestones.
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Does Banking Competition Affect Innovation
TL;DR: In this paper, the authors exploit the deregulation of interstate bank branching laws to test whether banking competition affects innovation and find robust evidence that banking competition reduces state-level innovation by public corporations headquartered within deregulating states.
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Firm Boundaries Matter: Evidence from Conglomerates and R&D Activity
TL;DR: The authors examined the impact of the conglomerate form on the scale and novelty of corporate R&D activity and found that firms acquired in a diversifying mergers produce both a smaller number of innovations and less novel innovations, where innovations are measured using patent-based metrics.
Posted Content
Banking Deregulation and Innovation
TL;DR: In this article, the authors find that intrastate banking deregulation, which increased the local market power of banks, decreased the level and risk of innovation by young, private firms.
References
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TL;DR: In this paper, the authors present a history of the first half of the 20th century, from 1875 to 1914, of the First World War and the Second World War.
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TL;DR: The theory of economic development was first published in 1911 by Schumpeter as discussed by the authors, who argued that economics is a natural self-regulating mechanism when undisturbed by "social and other meddlers." In his preface he argues that despite weaknesses, theories are based on logic and provide structure for understanding fact.
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How Much Should We Trust Differences-In-Differences Estimates?
TL;DR: In this article, the authors randomly generate placebo laws in state-level data on female wages from the Current Population Survey and use OLS to compute the DD estimate of its "effect" as well as the standard error of this estimate.
Journal ArticleDOI
The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration
Sanford J. Grossman,Oliver Hart +1 more
TL;DR: In this paper, a theory of costly contracts is presented, which emphasizes the contractual rights can by of two types: specific rights and residual rights, and when it is costly to list all specific rights over assets, it may be optimal to let one party purchase all residual rights.
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Patent Statistics as Economic Indicators: A Survey
TL;DR: In this paper, the authors present a survey on the use of patent data in economic analysis, focusing on the patent data as an indicator of technological change and concluding that patent data remain a unique resource for the study of technical change.