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Waves of Creative Destruction : Customer Bases and the Dynamics of Innovation

Stein, Jeremy C. - 1994

This paper develops a model of repeated innovation with knowledge spillovers. The model's novel feature is that firms … compete on two dimensions: 1) product quality or cost, where one firm's innovation ultimately spills over to other firms; and … some circumstances dramatically reduce the long-run average level of innovation; 2) they lead to endogenous bunching, or …

Persistent link: https://www.econbiz.de/10012474137

Academic Freedom, Private-Sector Focus, and the Process of Innovation

Aghion, Philippe - 2005

We develop a model that clarifies the respective advantages and disadvantages of academic and private-sector research. Our model assumes full protection of intellectual property rights at all stages of the development process, and hence does not rely on lack of appropriability or spillovers to...

Persistent link: https://www.econbiz.de/10012467136

Strategic Trade, Competitive Industries and Agricultural Trade Disputes

Bagwell, Kyle - 2000

The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the theory is augmented to allow for...

Persistent link: https://www.econbiz.de/10012470921

Information Production and Capital Allocation : Decentralized vs. Hierarchical Firms

Stein, Jeremy C. - 2000

This paper assesses different organizational forms in terms of their ability to generate information about investment projects and allocate capital to these projects efficiently. A decentralized approach with small, single-manager firms is most likely to be attractive when information about...

Persistent link: https://www.econbiz.de/10012471056

Forecasting Crashes : Trading Volume, Past Returns and Conditional Skewness in Stock Prices

Chen, Joseph - 2000

This paper is an investigation into the determinants of asymmetries in stock returns. We develop a series of cross-sectional regression specifications which attempt to forecast skewness in the daily returns of individual stocks. Negative skewness is most pronounced in stocks that have...

Persistent link: https://www.econbiz.de/10012471074

Differences of Opinion, Rational Arbitrage and Market Crashes

Hong, Harrison - 1999

We develop a theory of stock-market crashes based on differences of opinion among investors. Because of short-sales constraints, bearish investors do not initially participate in the market and their information is not revealed in prices. However, if other, previously-bullish investors have a...

Persistent link: https://www.econbiz.de/10012471408

Banks as Liquidity Providers : An Explanation for the Co-Existence of Lending and Deposit-Taking

Kashyap, Anil K. - 1999

This paper addresses the following question: what ties together the traditional commercial banking activities of deposit-taking and lending? We begin by observing that since banks often lend via commitments, or credit lines, their lending and deposit-taking may be two manifestations of the same...

Persistent link: https://www.econbiz.de/10012471845

Is Everything Neutral?

Bernheim, B. Douglas - 1986

In his well-known analysis of the national debt, Robert Barro introduced the notion of a "dynastic family." This notion has since become a standard research tool, particularly in the areas of public finance and macroeconomics. In this paper, we critique the assumptions upon which the dynastic...

Persistent link: https://www.econbiz.de/10012476983

A Quantity-Driven Theory of Term Premia and Exchange Rates

Greenwood, Robin - 2020

We develop a model in which specialized bond investors must absorb shocks to the supply and demand for long-term bonds in two currencies. Since long-term bonds and foreign exchange are both exposed to unexpected movements in short-term interest rates, a shift in the supply of long-term bonds in...

Persistent link: https://www.econbiz.de/10012481468

Delocation and Trade Agreements in Imperfectly Competitive Markets

Bagwell, Kyle - 2009

We consider the purpose and design of trade agreements in imperfectly competitive environments featuring firm-delocation effects. In both the segmented-market Cournot and the integrated-market monopolistic competition settings where these effects have been identified, we show that the only...

Persistent link: https://www.econbiz.de/10012463205