Showing papers on "Spillover effect published in 1996"
TL;DR: In this paper, the authors study industry-level patterns in takeover and restructuring activity during the 1982-1989 period and find significant differences in both the rate and time-series clustering of these activities across 51 industries.
1,571 citations
TL;DR: In this paper, the authors investigated the role of geographic factors in explaining the observed distribution dynamics across European regions. And they found that geographic factors are more important than national ones for explaining inequality dynamics.
743 citations
TL;DR: In this article, a longitudinal study of hospital-based health care professionals examined psychological states as a function of demands and resources in the workplace and at home, and found evidence of spillover relationships from the work to home environment, and to a lesser extent, spillover from home to work.
Abstract: A longitudinal study of hospital-based health care professionals (N = 151) examined psychological states as a function of demands and resources in the workplace and at home. It found over the study interval (3 months) evidence of spillover relationships from the work to home environment, and to a lesser extent, evidence of spillover from home to work A structural equation model focused on change, by including only relationships that enhanced the prediction of each measure beyond its inherent consistency across the study interval. Further, it considered relationships across the work and home domains in the context of relationships within each domain, so that spillover relationships were always in addition to domain-specific relationships. The analysis found health care workers' sense of professional efficacy to have the most wide-ranging relationships, with links within the work domain, the home domain, and the boundary between these two domains. The results suggest that in contrast with the lagged relatio...
352 citations
TL;DR: This article showed that knowledge spillovers are primarily intranational rather than international in scope, providing empirical confirmation of a crucial assumption in much of the theoretical literature and the public debate on policy.
Abstract: In a number of theoretical models, it has been shown that technological externalities can generate multiple equilibria in the global pattern of specialization and trade, with different consequences for the relative welfare of the trading countries. In such models, temporary government policies can have lasting effects by pushing the global economy into a particular equilibrium. However, the prediction of multiple equilibria generally hinges on the assumption that the technological externalities are intranational rather than international in scope. In this paper, I point out important shortcomings in previous attempts to estimate the effects of intranational and international knowledge spillovers. Then, I provide new estimates of the relative impact of intranational and international knowledge spillovers on innovation and productivity at the firm level, using previously unexploited panel data from the U.S. and Japan which provide a rich description of the firms' technological activities and allow for potentially much more accurate measurement of spillover effects. My estimates indicate that knowledge spillovers are primarily intranational in scope, providing empirical confirmation of a crucial assumption in much of the theoretical literature. This finding has important implications for the theoretical literature and the public debate on policy.
210 citations
TL;DR: In this article, the authors develop a model in which a monopolist supplier can contribute to downstream product improvements by creating knowledge spillovers which downstream firms use as a substitute for their own R&D efforts.
Abstract: This paper develops a model in which a monopolist supplier can contribute to downstream product improvements by creating knowledge spillovers which downstream firms use as a substitute for their own R&D efforts. Although a market for R&D information does not exist, the supplier may appropriate an indirect return on R&D for two reasons. Sufficiently high levels of spillover information lead to greater downstream product quality, and spillover information reduces the equilibrium sunk cost of R&D for downstream firms and thus facilitates entry. Both effects cause an expansion of downstream output and enhance the demand for the supplier's intermediate good. Given sufficiently strong incentives for supplier R&D, the locus of R&D shifts partially from the downstream to the upstream industry. R&D expenditures, technological opportunities, and downstream industry structure are determined endogenously. Weak appropriability conditions in the downstream industry enhance innovation incentives in the supply sector.
142 citations
TL;DR: In this paper, the authors present a panoramic view of scientific involvement in technology in terms of a country comparison, which attempts to add quantitative evidence for an evolutionary understanding of the externalities between public science, latent public technology and private innovation.
Abstract: When quantifying spillover effects among technologies and between science and technology one faces the problem that clear-cut measurement procedures are difficult to define and to validate. The well-known approach by indexing certain outputs (patent documents) grasps only parts of the complex and feedback innovation-oriented processes. However, recently, new promising lines of research for understanding technological externalities have been embarked upon. New measurements of the science-technology-innovation interface are presented from three different aspects. First, the overall properties of technological spillover and, second, of science involvement in innovations are presented on a world-wide scale. The third main section of the results provides a panoramic view of scientific involvement in technology in terms of a country comparison. The contribution attempts to add quantitative evidence for an evolutionary understanding of the externalities between public science, latent public technology and private innovation.
106 citations
TL;DR: In this paper, the effects of spillovers on the structure of production were analyzed, i.e., the effects on factor demand such as labor and investment and output supply, and the effect of technological transfers on the pattern of trade.
Abstract: In this paper we: (1) estimate the effects of international RD (2) analyze the effect of spillovers on the structure of production, i.e., the effects on factor demand such as labor and investment and output supply; (3) examine the effect of technological transfers on the pattern of trade, i.e., on imports and exports and; (4) calculate the private rates of return on physical capital and R&D investment as well as the social rates of return of foreign R&D spillovers. To achieve the objectives of this study, we have developed a framework that integrates several strands of the available approaches in the literature: the GNP function approach suggested by Burgess (1974) and Kohli (1978), the spillover models proposed by Bernstein and Nadiri (1988), Bernstein and Mohnen (1994), Coe and Helpman (1995) and Park (1995), and the familiar interrelated factor demand and cost models.
81 citations
TL;DR: The authors suggest that participation in decision making at work increases the probability of participating in poli tics outside the workplace and suggest that the "simple political spillover" hypothesis, which states that participants in decision-making at work increase their probability of taking part in political activities outside of the workplace, is correct.
Abstract: We suggest that the "simple political spillover" hypothesis—that participation in decision making at work increases the probability of participating in poli tics outside the workplace—ought to be r...
80 citations
TL;DR: In this paper, a model of optimal territorial decentralization is presented in which smaller local governments have an informational advantage concerning public goods' production costs and the central government has imperfect information on spillover effects induced by local projects.
71 citations
TL;DR: This paper found that older players in highly competitive select-leagues were more likely to approve of violence and to act violently in other social settings than were younger players, house-league players, and nonplayers of all ages.
Abstract: Cultural spillover theory holds that the more a society tends to legitimate the use of violence to attain ends for which there is widespread social approval, the greater the likelihood of illegitimate violence. This study was a test of cultural spillover theory as it applies to hockey violence. Based on data from a representative sample survey of Toronto hockey players and a comparison group of nonplayers, we tested the proposition that violence in hockey “spills over” into violence in other social settings. The results offer support for a cultural spillover explanation of hockey violence. Older players in highly competitive select-leagues were more likely to approve of violence and to act violently in other social settings than were younger select-league players, house-league players, and nonplayers of all ages.
66 citations
TL;DR: In this paper, it is argued that paying workers in cash, instead of food, may be the superior option in many situations and that some plausible spillover effects may weaken this argument.
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TL;DR: In this article, Bulow and Rogoff show that there is a single debt relationship, and regardless of their past actions, governments can earn the (possibly state-contingent) market rate of return by saving abroad.
Abstract: A traditional explanation for why sovereign governments repay debts is that they want to keep good reputations so they can easily borrow more. Bulow and Rogoff show that this argument is invalid under two conditions: (i) there is a single debt relationship, and (ii) regardless of their past actions, governments can earn the (possibly state-contingent) market rate of return by saving abroad. Bulow and Rogoff conjecture that, even under condition (ii), in more general reputation models with multiple relationships and spillover across them, reputation may support debt. This paper shows what is needed for this conjecture to be true.
TL;DR: In this article, a study of intraindustry strike effects in highly concentrated industries focuses on two samples: firms that experienced a strike involving 1,000 or more workers between 1982 and 1990, and the non-struck firms that were their closest competitors.
Abstract: Prior research has established that strikes incur significant economic losses for the struck firms. This event study of intraindustry strike effects in highly concentrated industries focuses on two samples: firms that experienced a strike involving 1,000 or more workers between 1982 and 1990, and the nonstruck firms that were their closest competitors. Contrary to the prediction of some models that the economic losses incurred by struck firms are captured by their nonstruck competitors, the results indicate that the total spillover from shareholders of the struck firms to shareholders of the nonstruck competitors in this sample was not statistically significant. The authors speculate that the struck firms were able to limit spillover effects through such tactics as stockpiling inventory before a strike. Also, concessions by labor, which were common outcomes of collective bargaining during the sample period, probably significantly reduced the struck firms' total strike cost.
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TL;DR: This paper examined spillover effects of the activities of multinational firms (MNCs) in host countries, where the operations of foreign multinationals may influence local firms in the MNC's own industry as well as firms in other industries.
Abstract: This paper examines spillover effects of the activities of multinational firms (MNCs). Such effects are most likely to be found in host countries, where the operations of foreign multinationals may influence local firms in the MNC’s own industry as well as firms in other industries. There is no comprehensive evidence on the exact nature or magnitude of these effects, however, although it is suggested that host country spillovers vary systematically between countries and industries. In particular, the positive effects of foreign investment are likely to increase with the level of local capability and competition. The spillovers to the home countries of MNCs are often more difficult to identify, for various reasons. Earlier studies suggest that the effects are generally positive, but the increasing international division of labour within multinationals complicates the analysis. The impact on the home country is likely to depend on what activities these firms concentrate on at home.
TL;DR: The authors examined the impact of technological change on net job creation and found that firms with a higher stock of innovations face lower adjustment costs than less technologically progressive firms, and that there is no significant capital deepening effect from innovation, nor spillover effects on employment from innovations elsewhere in the firm's industry.
Abstract: This paper examines the impact of technological change on net job creation. Innovation (by a company or its rivals) can affect many dimensions of a firm's employment decision and we distinguish between three: changes due to higher output, changes due to shifting factor intensities and changes in the adjustment costs of firms. The parameter estimates from a structural labour demand model suggest that firms with a higher stock of innovations face lower adjustment costs than less technologically progressive firms. There is no significant capital deepening effect from innovation, nor spillover effects on employment from innovations elsewhere in the firm's industry.
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TL;DR: In this paper, the authors analyze recent findings by Coe and Helpman (1995) of trade-related international RD often, in fact, to larger estimated spillover effects which are more precisely estimated than by employing the 'true' bilateral trade shares.
Abstract: In this paper, I analyze recent findings by Coe and Helpman (1995) of trade-related international RD often, in fact, to larger estimated spillover effects which are more precisely estimated than by employing the 'true' bilateral trade shares.
TL;DR: In this article, the authors provide a more complete characterization of the welfare effects of cooperative cost-reducing R&D investments in Cournot oligopoly with spillovers, and show that cooperative research cooperation is socially beneficial for all spillover rates.
Abstract: This paper provides a more complete characterization of the welfare effects of cooperative cost-reducing R&D investments in Cournot oligopoly with spillovers. I show that R&D cooperation reduces both R&D spending and social surplus when the spillover rate in R&D is neither sufficiently high nor sufficiently low. As the elasticity of the slope of the inverse demand function increases, however, the set of spillover rates over which cooperative R&D reduces social welfare shrinks, and in the limit, cooperative R&D is socially beneficial for all spillover rates.
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TL;DR: Padoan et al. as mentioned in this paper examined the properties of a dynamic disequilibrium model focused on trade specialization and the accumulation of knowledge and showed that under perfectly balanced growth (no change in trade specialization, and a uniform growth of knowledge), international diffusion of knowledge is irrelevant for growth; however, under unbalanced growth (with changes in the structure of specialization, the process of structural change may be enhanced by the effects on the domestic accumulative knowledge of domestic spillover, as innovation activities in one sector generate positive externalities on the rest of the economy).
Abstract: The accumulation of knowledge affects trade performance and competitiveness, but trade also (through imports) affects the accumulation of knowledge. Padoan examines the properties of a dynamic disequilibrium model focused on trade specialization and the accumulation of knowledge. He uses a sector breakdown (four export and two import sectors) following Pavitt's (1984) taxonomy, which is especially appropriate for empirically analyzing the relationship between innovation activities and production and export performance. Steady-state analysis shows that: Under perfectly balanced growth (no change in trade specialization and a uniform growth of knowledge), international diffusion of knowledge is irrelevant for growth. Under unbalanced growth (with changes in the structure of specialization), the process of structural change may be enhanced by the effects on the domestic accumulation of knowledge of domestic spillover, as innovation activities in one sector generate positive externalities on the rest of the economy. The growth of foreign knowledge has an ambivalent effect on domestic performance because it is both a complement to, and a substitute for, domestic knowledge. Whenever these two effects do not perfectly match, the diffusion of international knowledge is associated with unbalanced growth. Imports of knowledge-intensive goods may not lead to higher growth unless there is sufficiently strong trade performance in the knowledge-intensive sectors (that is, there are thresholds in expansion of market share). This result, whose implications for developing countries is relevant, is not usually reported in the literature in which greater accumulation of foreign knowledge unambiguously leads to higher growth in the country that imports technology through trade. Unbalanced growth is also associated with output catching up. Technological catching up is necessary but not sufficient for balanced growth. Parameter estimates were obtained for France, Germany, Italy, Japan, and the United Kingdom. Results appear to be consistent with theoretical expectations about the importance of price and nonprice determinants of trade performance in the four sectors. Results also seem to be generally consistent with the distribution of revealed comparative advantages in the sense that the country cases exhibit high and significant price and knowledge elasticities and high adjustment speeds - suggesting a good capacity to deliver in sectors with revealed comparative advantage. Simulation exercises confirm steady-state results on the relevance of country differences in trade specialization and in the domestic accumulation of knowledge as they affect growth. They also clarify the relationship between growth and changes in the structure of trade specialization. This paper - a product of the International Trade Division, International Economics Department - is part of a larger effort in the department to assess the role of technology diffusion in economic development.
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TL;DR: In this article, a stochastic dynamic model of a firm's optimal innovative behavior is derived based on a simultaneous equation system for product and process innovations with intertemporal spillover effects.
Abstract: Based on a stochastic dynamic model of a firm's optimal innovative behavior we derive a simultaneous equation system for product and process innovations with intertemporal spillover effects. We estimate various versions of the model with dichotomous Innovation data at the firm level by using a bivariate dynamic random effects probit model. The data set, provided by the Ifo-Institute, covers the period between 1981 and 1989 and includes 586 firms of the West German manufacturing sector. It turns out that a firm's probabilities of product and process innovations depend positively on dynamic spillover effects even if one controls for firm size, market concentration, demand expectations, labor cost, unobserved heterogeneity and potential endogeneity of the explanatory variables.
TL;DR: In this article, the authors argue that the predominant theories of European integration cannot adequately explain this shift in policymaking from the national to the regional level, and propose reactive spillover, which combines an appreciation of international environmental pressures with the concept of spillover.
Abstract: The European Union's influence on defense industry mailers has increased in recent years. This is plaiting because the Treaty of Rome permits member stales to maintain armaments production and trade issues at the national level. The argument presented in this paper is that the predominant theories of European integration cannot adequately explain this shift in policymaking from the national to the regional level. Reactive spillover combines an appreciation of international environmental pressures with the concept of spillover.
TL;DR: In this article, the cracking of diphenylmethane on mixtures of sulfided CoMo/SiO2 and amorphous silica-alumina particles was studied.
Abstract: The cracking of diphenylmethane on mixtures of sulfided CoMo/SiO2 and amorphous silica-alumina particles was studied. The products were benzene and toluene. The addition of CoMo/SiO2 to silica-alumina strongly increases the cracking rate and the OH-OD exchange, and diminishes the amount of coke formed. This is interpreted by a spillover of dissociated H2 (or D2) onto the silica-alumina, with spillover hydrogen forming Bronsted sites and reacting with coke precursors, and spillover deuterium exchanging with the hydroxyls.
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TL;DR: The authors examined the possibility of negative output spillovers from public infrastructure and found that changes in county output are positively associated with changes in highway and street capital within the same county, but output changes are negatively associated with increases in Highway and Street capital in other counties.
Abstract: This paper examines the possibility of negative output spillovers from public infrastructure. A model of productive public capital shows that, when input factors are mobile, public infrastructure investments in one location can draw production away from other locations. In a linear production function framework, this effect would be manifested as a negative output spillover from public capital. Using data for California counties from 1969 through 1988, such negative spillover effects are shown to exist in the case of highway and street capital. The data show that changes in county output are positively associated with changes in highway and street capital within the same county, but output changes are negatively associated with changes in highway and street capital in other counties.
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TL;DR: In this article, Bulow and Rogoff show that there is a single debt relationship, and regardless of their past actions, governments can earn the (possibly state-contingent) market rate of return by saving abroad.
Abstract: A traditional explanation for why sovereign governments repay debts is that they want to keep good reputations so they can easily borrow more. Bulow and Rogoff show that this argument is invalid under two conditions: (i) there is a single debt relationship, and (ii) regardless of their past actions, governments can earn the (possibly state-contingent) market rate of return by saving abroad. Bulow and Rogoff conjecture that, even under condition (ii), in more general reputation models with multiple relationships and spillover across them, reputation may support debt. This paper shows what is needed for this conjecture to be true.
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TL;DR: This article showed that knowledge spillovers are primarily intranational rather than international in scope, providing empirical confirmation of a crucial assumption in much of the theoretical literature and the public debate on policy.
Abstract: In a number of theoretical models, it has been shown that technological externalities can generate multiple equilibria in the global pattern of specialization and trade, with different consequences for the relative welfare of the trading countries. In such models, temporary government policies can have lasting effects by pushing the global economy into a particular equilibrium. However, the prediction of multiple equilibria generally hinges on the assumption that the technological externalities are intranational rather than international in scope. In this paper, I point out important shortcomings in previous attempts to estimate the effects of intranational and international knowledge spillovers. Then, I provide new estimates of the relative impact of intranational and international knowledge spillovers on innovation and productivity at the firm level, using previously unexploited panel data from the U.S. and Japan which provide a rich description of the firms' technological activities and allow for potentially much more accurate measurement of spillover effects. My estimates indicate that knowledge spillovers are primarily intranational in scope, providing empirical confirmation of a crucial assumption in much of the theoretical literature. This finding has important implications for the theoretical literature and the public debate on policy.
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TL;DR: In this paper, the authors use plant level data on a sample of entrants in SIC 38, Instruments, to examine the characteristics associated with both proprietary and spillover learning by doing.
Abstract: Learning by doing, especially spillover learning, has received much attention lately in models of industry evolution and economic growth. The predictions of these models depend on the distribution of learning abilities and knowledge flows across firms and countries. However, the empirical literature provides little guidance on these issues. In this paper, I use plant level data on a sample of entrants in SIC 38, Instruments, to examine the characteristics associated with both proprietary and spillover learning by doing. The plant level data permit tests for the relative importance of within and between firm spillovers. I include both formal knowledge, obtained through R&D expenditures, and informal knowledge, obtained through learning by doing, in a production function framework. I allow the speed of learning to vary across plants according to characteristics such as R&D intensity, wages, and the skill mix. The results suggest that (a) Ainformal@ knowledge, accumulated through production experience at the plant, is a much more important source of productivity growth for these plants than is Aformal@ knowledge gained via research and development expenditures, (b) interfirm spillovers are stronger than intrafirm spillovers, (c) the slope of the own learning curve is positively related to worker quality, (d) the slope of the spillover learning curve is positively related to the skill mix at plants, (e) neither own nor spillover learning curve slopes are related to R&D intensities. These results imply that learning by doing may be, to some extent, an endogenous phenomenon at these plants. Thus, models of industry evolution that incorporate learning by doing may need to be revised. The results are also broadly consistent with the recent growth models.
TL;DR: The effects of incomplete markets and positive spillovers on aggregate and industry output behavior are explored, which exhibits both persistent fluctuations as well as procyclical productivity.
Abstract: This paper explores the effects of incomplete markets and positive spillovers on aggregate and industry output behavior. We consider an economy composed of a fixed set of infinitely-lived industries. When industries coordinate production decisions they jointly improve their productivity. Markets are missing, however, in the sense that industries cannot automatically form the most productive coalitions due to the presence of communication frictions. The degree of coordination between industries is determined by a random matching process from which complex coalitions of industries emerge through bilateral industry interactions. High production by an industry improves the probability with which it communicates with other industries, creating a positive spillover effect on the productivity of the rest of the economy. Aggregate output behavior exhibits both persistent fluctuations as well as procyclical productivity.
15 Sep 1996
TL;DR: In this paper, it is shown that a particular feedforward controller called the zero spillover controller avoids spillover by producing perfect disturbance cancellation at every frequency, which is shown to be an optimal feedback controller for an LQG problem with suitable cross weights.
Abstract: With the success of feedforward techniques for active noise control, feedback control researchers have begun to explore the relationship between these two control paradigms. The goal of the present paper is to further investigate this relationship by means of the classical Bode integral constraint on achievable performance. These results provide insight into the phenomenon of spillover which has been widely discussed in the vibration control literature. Specifically, it is shown that a particular feedforward controller called the zero spillover controller avoids spillover by producing perfect disturbance cancellation at every frequency. For realizability, we derive the approximate zero spillover controller which is shown to be an optimal feedback controller for an LQG problem with suitable cross weights. Finally, the results are illustrated by means of illustrative mechanical and acoustic examples.
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TL;DR: In this paper, the authors developed a North-South endogenous growth model to examine three phases of development in the South: imitation of Northern products, imitation and innovation and finally, innovation only.
Abstract: In this paper, we develop a North-South endogenous growth model to examine three phases of development in the South: imitation of Northern products, imitation and innovation and finally, innovation only. In particular, the model has the features of catching up (and potentially overtaking) which are of particular relevance to the Pacific Rim economies. We show that the possible equilibria depend on cross-country assimilation effects and the ease of imitation. We then apply the model to analyse the impact of R&D subsidies. There are some clear global policy implications which emerge from our analysis. Firstly, because subsidies to Southern innovation benefit the North as well, it is beneficial to the North to pay for some of these subsidies. Secondly, because the ability of the South to assimilate Northern knowledge and innovate depends on Southern skills levels, the consequent spillover benefits on growth make the subsidising of Southern education by the North particularly attractive.
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TL;DR: In this article, the authors investigated the role of geographic factors in explaining the observed distribution dynamics across European regions. And they found that geographic factors are more important than national ones for explaining inequality dynamics.
Abstract: Per capita incomes across European regions are not equal and do not stay constant; regional income distributions fluctuate over time. Such a process could have many possible limiting outcomes: complete equality (convergence), stratification, and continually increasing inequality are but three distinct possibilities. This paper asks if nation-state, macro factors and physical-geography spillover effects help explain the observed distribution dynamics across European regions. Geographical factors are found to matter more than national ones; but both are important for explaining inequality dynamics.