The commercial value of basic knowledge depends on the arrival of follow-up developments mostly from outside the boundaries of the inventing firm. Private returns would depend on the extent the inventing firm internalizes these follow-up developments. Such internalization is less likely to occur...

It is shown that spillovers can enhance private returns to innovation if they feed back into the dynamic research of the original inventor (Internalized spillovers), but will always reduce private returns, if the original inventor does not benefit from the advancements other inventors build into...

Increasingly, development projects list social capital development and network brokerage among their objectives.  How do we quantitatively evaluate such initiatives?  Best practice, diff-in-diff methods may be impossible or too costly.  Here, we try using data that are byproducts of the...

Chinese economic growth has been spectacular in the last 30 years.  We investigate the role of International Joint Ventures with Technology Transfer agreements, an understudied area.  Technology transfer is the traditional mechanism for developing countries to "catch up" and has been a key...

This paper builds a dynamic stochastic general equilibrium (DSGE) model of endogenous growth that is capable of generating substantial degrees of endogenous persistence in productivity.  When products go out of patent protection, the rush of entry into their production destroys incentives for...

This paper uses the adoption and invention of the spinning jenny as a test case to understand why the industrial revolution occurred in Britain in the eighteenth century rather than in France or India.  It is shown that wages were much higher relative to capital prices in Britain than in other...

We identify a natural way of ordering functions, which we call the interval dominance order and develop a theory of monotone comparative statistics based on this order.  This way of ordering functions is weaker than the standard one based on the single crossing property (Milgrom and Shannon,...

This paper presents a model of a rational seller who is actively learning the slope of his demand curve via his pricing strategy.  Consequently, this seller optimally experiments with his price.  Resulting price patterns show a lot of discreteness (as observed in the data), which has proved to...

We present a continous time non tatonnement process for frictionless and perfectly competitive markets with (possibly non convex) production, where the natural rate of unemployment (NRU) emerges as the asymptotic value of unemployment.  Consumers and producers are myopic and repeatedly...

Suppose we observe a finite number of input decisions made by a firm, as well as the prices at which those inputs were acquired.  What conditions on the set of observations are necessary and sufficient for it to be consistent with a firm choosing inputs to maximize profit, subject to a...