Showing papers on "Spillover effect published in 1994"
TL;DR: In this article, the authors show that there is no role for public-sector capital in affecting private sector productivity and that only estimates of state production functions that do not include such controls find substantial productivity impacts.
Abstract: A number of studies have suggested a quantitatively important relationship between public-sector capital accumulation and private sector productivity, with the most compelling evidence derived from analyses of state-level data. estimates herein of production functions that use standard techniques to control for unobserved, state-specific characteristics, however, reveal essentially no role for public-sector capital in affecting private sector productivity. Only estimates of state production functions that do not include such controls find substantial productivity impacts. This result reconciles existing econometric estimates with the findings of Hulten and Schwab based on growth accounting techniques, as such techniques effectively control for state-specific effects. Region-level estimates are essentially identical to those from state data, suggesting no quantitatively important spillover effects across states. Copyright 1994 by MIT Press.
782 citations
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TL;DR: In this article, the authors examined intra-industry spillovers from FDI in Uruguayan manufacturing plants in 1988, to determine whether differences in the technology gap between locally owned plants and foreign affiliates have any impact on the relation between local productivity and foreign presence.
Abstract: This paper examines intra-industry spillovers from FDI in Uruguayan manufacturing plants in 1988, to determine whether differences in the technology gap between locally- owned plants and foreign affiliates have any impact on the relation between local productivity and foreign presence. We find a positive and statistically significant spillover effect only in a sub-sample of locally-owned plants with moderate technology gaps vis-a-vis foreign firms. Our interpretation is that there are firm-specific differences in the ability to absorb spillovers, and that these may explain some of the contradictory findings of earlier spillover studies.
525 citations
TL;DR: In this article, the effects of international risk sharing in a world economy in which growth rates of income are endogenous are investigated. But the authors focus on two market structures: in the first structure, there are no markets which allow for international diversification of country-specific income risk, and in the second structure there are complete international markets for risksharing.
Abstract: International risk sharing which diversifies away income risk will reduce saving, with constant relative risk aversion. If growth arises from the external effects of human capital accumulation then reducing saving will reduce growth. Welfare also may fall with risk sharing, because endogenous growth with external effects of capital accumulation typically implies a competitive equilibrium growth rate already less than the optimal growth rate. We demonstrate these results in a standard, representative-agent economy. Diversifying away rate-of-return risk also will reduce saving and growth rates if relative risk aversion exceeds one, but this diversification always increases welfare. This paper studies the effects of international risk sharing (portfolio diversification) in a world economy in which growth rates of income are endogenous. Growth is based upon the spillover effects of human capital accumulation. As in Lucas (1988) and Romer (1986), there are positive, economy-wide spillovers of human capital intensity on individual labour productivity. In Section 2 we construct a multi-country growth model with an infinitely-lived representative agent in each country. Each country faces income risk but there is no aggregate uncertainty at the world level. We focus on two market structures. In the first structure there are no markets which allow for international diversification of country-specific income risk. In the second structure there are complete international markets for risksharing. With no aggregate "world" uncertainty, this completeness allows full diversification of country-specific risk. The paper has two central results. First, growth rates in all countries are lower in the equilibrium with full diversification. Second, in this same structure welfare of each country may be lower than in an equilibrium without risk sharing. The reasoning is as follows. With external effects of capital accumulation the compet
417 citations
TL;DR: In this article, the authors argue that each model is possible for different individuals and that while the relationship is positive for most individuals, it is not for all. But they do not discuss the differences between different models.
Abstract: There is a controversy in the literature over which theory ofthe job-life satisfaction relationship (spillover, compensation or segmentation) is correct. We argue in the present study that each model is possible for different individuals. Using techniques derived from Ghiselli (I960), the results suggested that while the relationship is positive for most individuals, it is not for all. Contributions ofthe findings and future research directions are discussed.
156 citations
TL;DR: The authors surveys some recent work which seeks to model persistent income inequality and explain such phenomena as ghetto formation and poverty traps, and illustrates how a number of these models possess a common structure in which local spillover effects interact with income-based stratification of neighborhoods to transmit parental economic status from generation to generation.
119 citations
TL;DR: In this article, the authors examine the effect of announcements of plans to increase R&D expenditures on the stock price of rival firms and find that a highly credible announcement has some spillover effects, and that the rival firm earns a much smaller but positive abnormal return.
Abstract: We examine the effect of announcements of plans to increase R&D expenditures on the stock price of rival firms. We test two alternative hypotheses: the first-to-innovate hypothesis versus the free-rider of spillovers hypothesis. Analysis of 114 announcements of increases in R&D expenditures indicates that rival firms suffer a statistically significant negative abnormal return at announcement, which supports the first-to-innovate hypothesis. This result provides a rationale for the potentially costly voluntary disclosure of R&D expenditures. A cross-sectional analysis of the abnormal returns to rival firms reveals that a highly credible announcement has some spillover effects, and that the rival firm earns a much smaller but positive abnormal return. An important implication is that it is always strategically beneficial for the firm to disclose its future R&D plan.
100 citations
TL;DR: In this article, a structural econometric model of learning by doing from a dynamic oligopoly game is derived, which is capable of testing hypotheses concerning both the technological nature and strategic implications of learning.
Abstract: In this article I derive a structural econometric model of learning by doing from a dynamic oligopoly game. Unlike previous empirical models, this model is capable of testing hypotheses concerning both the technological nature and strategic implications of learning. I estimate the model with firm-level data from the early U.S. rayon industry. The empirical results show that there were considerable differences across firms in both proprietary and spillover learning. The results also indicate that the two leading firms took their rival's reactions into account when choosing their strategies.
96 citations
TL;DR: The authors examined the sources of economic fluctuations in seven OECD small open economies and found that output fluctuations are primarily explained by domestic supply shocks, trade balance movements are explained mostly by domestic absorption shocks, and spillover effects of external shocks on the domestic economy are primarily on nominal, rather than real, variables.
87 citations
TL;DR: In this paper, the authors used U.K. firm level panel data to find evidence for efficiency wage payments and found that rent sharing due to efficiency wages is the only downstream spillover that drives a positive relationship between wage growth and product market performance.
Abstract: Efficiency wage theories have been put forward as attractive ways of explaining different aspects of the labour market. To find direct evidence of efficiency wage payments has proven to be quite difficult. We model various vertical spillovers from wage determination in an upstream labour market to market share performance in a downstream product market and vice versa. We do this within Sutton''s (1991) general oligopoly model under alternative theories of the labour market. Rent sharing due to efficiency wages is shown to create only a downstream vertical spillover. While rent sharing due to wage bargaining creates a two way vertical spillover. The spillovers due to efficiency wage payments are shown to be the only downstream spillover that drives a positive relationship between a firm''s wage growth and product market performance. Using U.K. firm level panel data we constrain the data with our theory to pinpoint the downstream spillover due to efficiency wage payments. The spillover turns out to be significant and we claim this to be the first direct and general empirical evidence for efficiency wage payments.
67 citations
TL;DR: In this article, the authors present an alternative approach for estimating union spillover effects on profitability using a data set and methodology similar to Ruback and Zimmerman's, and they find that the total negative effects of unionization on profits, after cross-firm or spillover effect are included, are nearly three times as large as the own-force effects reported by Ruback-and- Zimmerman.
Abstract: Ruback and Zimmerman's (1984) event study, which showed that formal union-organizing activity significantly lowers a firm's market value, provides compelling evidence that unionization reduces a firm's profitability. Union-organizing activity may also have sizable cross-firm or spillover effects on the performance of neighboring firms. Thus the total impact of union organizing on the wealth of firm owners may be substantially understated by focusing only on the firm in which the union-organizing activity occurs. This paper presents an alternative approach for estimating union spillover effects on profitability using a data set and methodology similar to Ruback and Zimmerman's. We find that the total negative effects of unionization on profits, after cross-firm or spillover effects are included, are nearly three times as large as the own-firm effects reported by Ruback and Zimmerman. The hypothesis that changes in unionization have spillover effects on nonunion firms is well known. Formal union-organizing activity at one firm may increase the threat of unionization at other firms. Neighboring firms may respond to the greater threat of unionization
41 citations
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TL;DR: In this paper, the stock of human capital and the degree of integration into the world economy are used to measure social capability and find an independent effect of increased trade intensity and trade regime on productivity growth.
Abstract: In this study we test whether social capability promotes catching up, the hypothesis that there is technological spillover from leaders to followers. A simple model that captures the hypothesized interaction is presented and tested on an extended sample of countries. The stock of human capital and the degree of integration into the world economy are used to measure social capability. Both measures are important in determining the degree to which the catching-up potential is realized. We also find an independent effect of increased trade intensity and trade regime on productivity growth.
01 Jan 1994
TL;DR: In this article, the authors examined the role of agriculture in economic growth and provided a new conceptual model of agriculture's role in the economic growth of poor countries, focusing on the particular focus of their empirical analysis is on Kenya.
Abstract: This report examines the role of agriculture in economic growth. The particular focus of our empirical analysis is on Kenya, though the report also adds to the existing literature by providing a new conceptual model of agriculture's role in the economic growth of poor countries. Based on the econometric simulation model developed in this study, the economic growth multiplier associated with additional agricultural income in Kenya is nearly three times the magnitude of the growth multiplier for non-agriculture. A dollar of agricultural income generates an additional $0.63 of income outside of agriculture, while a dollar of non-agricultural income generates only $0.23 of income outside of non-agriculture. This and related simulations suggest that economic growth strategies for countries like Kenya should give high priority to supporting the agricultural sector. The conceptual model presented in this study argues that agricultural productivity in particular has beneficial spillover effects for non-agricultural productivity. Previous studies have concentrated on market-based inter-sectoral linkages as the source of agriculture's contribution to economic growth. The present study adds a short list of non-market based inter-sectoral linkages through which agriculture contributes indirectly to economic growth. These linkages arise from governmental learning by doing, increased economic stability, food security, and the relative efficiency of rural household decision-making. Preliminary tests of this model for Kenya indicate that agricultural productivity contributes significantly to non-agricultural productivity.
TL;DR: In this article, a dual model of trade under international scale economies is developed and applied to examine foreign investment, labor migration, and commercial policy, showing that protection is not a second-best alternative to direct assistance.
Abstract: Spillover effects associated with international scale economies are an immediate result of global and regional integration of industries and have important implications for commercial policy. In this paper, a general, dual model of trade under international scale economies is developed and applied to examine foreign investment, labor migration, and commercial policy. Notwithstanding the intuition of policymakers, protection is not a second-best alternative to direct assistance. It reduces the efficiency of the protected sectors by hindering integration and can only improve national welfare through terms-of-trade related effects, somewhat along the line of classic optimal tariff arguments. Copyright 1994 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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TL;DR: In this article, the first estimates of university R&D spillover effects on employment at this level of disaggregation, while controlling for prior innovations and state fixed effects, were presented.
Abstract: Using 4 years of data from 37 American cities and 6 high technology groupings we present the first estimates of University R&D spillover effects on employment at this level of disaggregation, while controlling for prior innovations and state fixed effects. Wages and employments are strongly positively related, which can be explained in various ways. Consistent with studies showing R&D spillover effects on innovation at the state level, we find robust evidence that university R&D is a statistically significant determinant of city high technology employment and some evidence for employment effects of innovation.
TL;DR: In this paper, the authors considered robust stabilization of the spillover phenomenon of large flexible structures by an observer-based compensator and derived robustness measures for a large flexible structure system controlled by a state-space framework.
Abstract: This paper considers robust stabilization of the spillover phenomenon of large flexible structures. New frequency domain robustness measures for a large flexible structure system controlled by an observer-based compensator is derived via a state-space framework. In the present approach, control and observation spillover are viewed as parametric perturbations, and the total spillover (combination of control and observation spillover) is treated as the unmodeled dynamics. A robust observed-based output feedback control law, obtained by solving two algebraic Riccati equations, is provided. Finally, a simply supported beam example is included to illustrate the application
TL;DR: In this article, a simple relationship between male earnings and unemployment was considered and the elasticity of earnings with respect to unemployment was found to be of the order of -0 to 1, with some variation being evident between manual and nonmanual men.
Abstract: This paper considers a simple relationship between male earnings and unemployment and analyzes British data collected at the county level over the period 1976-92. The estimates of a dynamic model on a balanced panel of county data suggest that the elasticity of earnings with respect to unemployment is of the order of -0 to 1, with some variation being evident between manual and nonmanual men. A binary contiguity matrix is used to model spillover effects between counties and both earnings and unemployment spillover effects are significant. Copyright 1994 by Scottish Economic Society.
TL;DR: In this article, the authors test whether catching up, the hypothesis that there is technological spillover from leaders to followers, is still important among industrialized countries and find that after 1970 there is no catching-up effect left in the tradables sector, while catching up is found for industries in the nontradables sector.
Abstract: In this study we test whether catching up, the hypothesis that there is technological spillover from leaders to followers, is still important among industrialized countries. Since the USA is no longer the technological leader in many industries and since catching up, if it still exists, may not operate uniformly across different industries, a disaggregated study is more appropriate. A testable model is developed and a number of tests for the existence of catching up are performed. A major improvement on previous tests is that the level of technology is measured in terms of total factor productivity. The two major conclusions, which are quite robust, are that after 1970 there is no catching-up effect left in the tradables sector, while catching up is found for industries in the nontradables sector.
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TL;DR: In this paper, the authors test whether catching up, the hypothesis that there is technological spillover from leaders to followers, is still important among industrialized countries and find that after 1970 there is no catching up effect left in the tradables sector, while catching up is found for industries in the nontradables sector.
Abstract: In this study we test whether catching up, the hypothesis that there is technological spillover from leaders to followers, is still important among industrialized countries. Since the U.S. is no longer the technological leader in many industries and since catching up, if it still exists, may not operate uniformly across different industries, a disaggregated study is more appropriate. A testable model is developed and a number of tests for the existence of catching up are performed. A major improvement on previous tests is that the level of technology is measured in terms of total factor productivity. The two major conclusions, which are quite robust, are that after 1970 there is no catching up effect left in the tradables sector, while catching up is found for industries in the nontradables sector.
TL;DR: Spillover oxygen, by maintaining the active phase in a high oxidation state, prevents solid state reactions (e.g., decomposition of solids) which are detrimental to activity or selectivity as mentioned in this paper.
Abstract: The work is focussed on the beneficial role of spillover oxygen in catalytic reactions Spillover oxygen, by maintaining the active phase in a high oxidation state, prevents solid state reactions (eg, decomposition of solids) which are detrimental to activity or selectivity The effect operates in oxidative dehydrogenation and in many selective oxidations (of olefins and alcohols, as well as of butane to maleic anhydride) The mechanism of this protective effect will be presented on the basis of experimental evidence obtained with a simple catalytic reaction, namely the oxygen-aided dehydration of N-ethyl formamide The effects in oxidation and the explanation are very similar A combination of measurements during catalysis and solid-state reoxidation experiments shows that spillover oxygen emitted by an otherwise inactive phase (a “donor”) reacts with partially reduced catalytic sites If not reoxidised by spillover oxygen, these sites reach too high a concentration and nucleate suboxides A very brief allusion will be made to cases where spillover species, instead of inhibiting, trigger decomposition of phases
TL;DR: In this article, the authors examine the timing of such technological adoption and show that strategic decisions regarding time may result in a "waiting game" where, in equilibrium, the efficient firm prefers to adopt after its less efficient rival, thus delaying the speed of technology transfer.
Abstract: Firms in the LDCs need to adopt and indigenize transferred technology before usage. The adoption costs depend on the state of the infrastructure and on the localized spillover effects generated by a rival firm. In this context, the paper examines the timing of such technological adoption. It shows that strategic decisions regarding time may result in a "waiting game" where, in equilibrium, the efficient firm prefers to adopt after its less efficient rival, thus delaying the speed of technology transfer. The paper also shows that under certain conditions, technology transfer may not take place within the planning horizon. [01, LI, Fl ]
TL;DR: In this paper, a two-country model of growth is developed in which cross country differences in growth may arise from differing internal rates of taxation on the earnings of physical capital under a residence based tax rule.
01 Jan 1994
TL;DR: An overview of a group of phenomena which provide inorganic catalysts with some of the fascinating properties of enzymes is presented in this article, and the consequences of spillover in the field of catalysis that have been discovered over the years have had increasing importance.
Abstract: An overview of a group of phenomena which provide inorganic catalysts with some of the fascinating properties of enzymes is presented. These phenomena occur because reactive atoms like H or O produced by dissociation of molecular hydrogen or oxygen, respectively, are highly mobile on certain surfaces. They can jump from the surface on which they have been formed to another one of a different nature, and bring about reactions on or over this latter surface. This is the spillover phenomenon. Effects attributed to spillover were first observed in reactions of solids. I shall show that the consequences of spillover in the field of catalysis that have been discovered over the years have had increasing importance. In addition to removal of coke, the inhibition or acceleration of solid state transformations due to spillover species can have a considerable impact on catalyst stability. The continuous creation of active sites by spillover (remote control) is a key process in many catalytic oxidations, and its role in hydrodesulfurization and reactions involved in hydrotreating is now receiving strong confirmation: these are two groups of reactions which correspond to major areas in catalytic science and technology. The structure of the sites and the mechanism by which they are generated begin to be elucidated. This short review also alludes to experimental methods that help distinguish effects due to spillover from other synergetic actions.
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TL;DR: In this article, the authors analyze a technology adoption process in which the effect of informational spillover interacts with network externalities and show that risk-averse and clustering behavior in the technology-adoption process is related to the tendency of subsequent users to free-ride on information contained in the decisions made by predecessors.
Abstract: This article analyzes a technology adoption process in which the effect of informational spillover interacts with network externalities. The interplay of informational externalities and payoff interdependency induces risk-averse and clustering behavior in the technology-adoption process. The analysis differs from the herd behavior literature in focusing on how the herd behavior of subsequent users influences the initial adoption decision. Moreover, herd behavior in this article stems from each agent's desire to inhibit the revelation of new information that can be used in a way detrimental to her, rather than from each agent's effort to free-ride on information contained in the decisions made by predecessors.(This abstract was borrowed from another version of this item.)
TL;DR: In this article, a modified Ricardo-Viner model is used to analyze the impact of transfer payments, EC farm policy, wage policy, and currency overvaluation on the adjustment to market forces.
Abstract: Some characteristics of the eastern German economy are analyzed as to their effects on the adjustment to market forces, using a modified Ricardo-Viner model. Included are transfer payments, EC farm policy, wage policy, and currency overvaluation. the analysis shows that the adjustments for a sector cannot be understood solely in terms of developments in that sector alone. the wage policy and the currency conversion magnified the adjustments in agriculture. Agricultural policy dampened the decline in agricultural output and had positive spillover effects on nontraded goods. Such interconnections must be kept in mind when analyzing the reform process.
TL;DR: In this article, the mean spillover effects categorized by day-of-the-week between United States and Japanese stock prices over the January 1976 to August 1992 period were examined.
Abstract: This paper examines mean spillover effects categorized by day-of-the-week between United States and Japanese stock prices over the January 1976 to August 1992 period. The stale quote problem associated with reported index opening prices is addressed. Significant mean spillover effects between the two markets are documented, a result consistent with international financial market integration. The finding of highly significant mean spillover effects from Tokyo on overnight returns in New York is unique to this study. In general, the results are consistent with market efficiency and consistent with predictions of international asset pricing models.
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TL;DR: In this paper, the authors examined commuting stress in automobile travel with a large representative sample (N = 2591) in southern California through telephone survey and found that commuting stress was significantly associated with distance and duration of the commute, controlling for age and income.
Abstract: A stressful nature of expose to traffic congestion in automobile commuting has been demonstrated in previous quasi-experimental research that has been measurement-intensive but conducted with relatively small samples. The present study examined commuting stress in automobile travel with a large representative sample (N = 2591) in southern California through telephone survey. Commuting stress was found to be significantly associated with distance and duration of the commute, controlling for age and income. As predicted, the stressful effects of long distance commutes (> 20 miles) were further moderated by gender, as women in such commutes perceive much greater commuting stress spillover to work and home. Some hypothesized stress-mitigating effects of ridesharing were found, as full-time ridesharers were significantly less bothered by traffic congestion and more satisfied with their commutes than solo drivers. In analyses of prospective adoption by solo drivers of alternative commuting modes, it was found that the perception of one's commute as having a negative impact on family life had a very significant effect on the inclination to try carpooling and train/rail, beyond the effect associated with distance itself. Commuting stress is discussed as an external cost of traffic congestion that is internalized by the solo driver. Marketing strategies for alternative modes of commuting might increase their effectiveness by highlighting stress consequences, especially negative impacts on family life.
21 Apr 1994
TL;DR: In this paper, a short history of the spillover phenomenon and its implications in catalysis is presented, and a reassessment of the incidence of spillover in the mechanism of various catalytic reactions may lead to the improvement of the activity, selectivity, lifetime and reproducibility of manufactured catalysts.
Abstract: A short history of the spillover is presented in order to specify the essence of the phenomenon and its implications in catalysis. The reassessment of the incidence of spillover in the mechanism of various catalytic reactions may lead to the improvement of the activity, selectivity, lifetime and reproducibility of manufactured catalysts.