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Persistent link: https://www.econbiz.de/10011883844
We present a heterogeneous-firm model in which management ability increases both production efficiency and product quality. Combining six micro-datasets on management practices, production and trade in Chinese and American firms, we find broad support for the model's predictions. First, better...
Persistent link: https://www.econbiz.de/10012916617
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effect on innovation. We develop a simple "trapped factor" model of innovation that is consistent with these empirical …
Persistent link: https://www.econbiz.de/10013038317
-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated inside firms …, which lowers the opportunity cost of innovation, generating an additional trapped factor effect. Starting from a baseline …
Persistent link: https://www.econbiz.de/10013057413