The dormant Commerce Clause has long been a thorn in the side of state policymakers. The latest battleground for the clash between federal courts and state legislatures is energy policy. In the absence of a decisive federal policy response to climate change, nearly thirty states have created a...

This paper discusses the relationship between the data economy and economic development and examines the benefits and challenges for emerging economies. In particular, it examines the market concentration and offers some reasoning for why we should expect that the data economy may end up...

There has recently been a resurgence of interest in how institutions affect economic performance. A review of this literature reveals that the concept of an 'institution' means different things to different scholars, both within economics and across the social sciences. This paper discusses what...

This paper considers a developing nation that faces a foreign exchange shortage and hence its demand for foreign goods is limited both by its income and its foreign exchange balance. Availability of international credit relaxes the second constraint. We develop a simple model of strategic...

In contrast to the usual approach taken in the literature, in which an Industry Life Cycle (ILC) is reproduced by aggregate functions, the model of this paper generates a self-organizing ILC. A general evolutionary agent-based simulation model is developed that can be adapted for specific...

This paper introduces a novel analysis of the classic quot;persistence of leadershipquot; question, and applies it to a newly constructed dataset for Japanese manufacturing. The analysis rests on an appeal to an empirical quot;scaling relationshipquot; between current market share and the...

I propose a computational model of industry evolution capable of matching many stylized facts. It views the firm as a myopic but adaptive entity whose survival depends on its ability to perform various activities with greater efficiency than its rivals. In this model, the shakeout pattern arises...

Does competitive pressure foster innovation? In addressing this important question, prior studies ignored a distinction between discrete innovation aiming at entirely new technology and continuous improvement consisting of numerous incremental improvements and modifications made upon the...

Since the 1970s, there have been significant changes in firm dynamics within and across industries in the US. Industries are increasingly dominated by a small number of large firms ("superstars"). Markups, market concentration, profits, and R&D spending are increasing, whereas business dynamism,...

We develop a theoretical model of the dynamics of an industry over the business cycle. We characterize the intertemporal evolution of the distribution of firms, where firms are distinguished by their capital in place and the productivity of their technology. We contrast investment and exit...