The relationship between volatility and risk has been one of the main factors underlying the interest in volatility modelling. An important question for international diversification is whether shocks in one market influence, or have spillovers into, returns and volatility in other markets. This paper tests for the existence of volatility spillovers among the S&P 500, FTSE 100 and Nikkei 225 st...

This paper analyses the effect of locally bounded knowledge spillovers on regional differences in growth. A model will be developed that allows spillovers to take place across regions. Certain conditions determine the amount of spillovers a region receives. By use of simulations (with randomised parameter constellations), it is possible to examine the general behaviour of the model. It is found...

This paper proposes a new empirical approach to assess the impact of knowledge spillovers on firms' productivity and demand. I consider a model where process innovations spillovers to other firms raise firms relative efficiency and technological diffusion of product innovations enhances firms' demand. By modelling knowledge capital as a function of own investment in R\&D and spillovers, I can c...

We study the choice that a firm makes between an employment mode, in which the firm controls service provision by employing professionals, sales representatives, or other types of agents, and an agency mode, in which the firm enables agents to provide their services on terms that they control. The choice of mode is determined by the need to balance double-sided moral hazard problems arising fro...

In the context of the debate on increased integration of Eurozone banking markets, this paper evaluates the impact of the Single Market on bank productivity and assesses the cross-border benefits of integration in terms of technological spillovers. We utilise a parametric meta-frontier Divisia index to estimate productivity change and identify technological gaps. We then assess the extent to wh...

Are initial competitive advantages self-reinforcing, so that markets exhibit an endogenous tendency to be dominated by only a few firms? Although this question is of great economic importance, no systematic empirical study has yet addressed it. Therefore, we examine experimentally whether firms with an initial cost advantage are more likely to invest in cost reductions than firms with higher in...

This paper surveys the empirical evidence on the link between innovation and economic growth in the light of New Growth Theory. It considers a number of different measures of innovation, such as R&D spending, patenting, and innovation counts, as well as the pervasive effect of technological spillovers between firms, industries, and countries. There are three main conclusions. The first is that ...

This paper develops an endogenous growth model with spillovers of public goods, Leviathan taxation, and mobile capital to examine the relative merits of centralized and decentralized fiscal systems for economic growth and social welfare. We show that a decentralized system dominates a centralized system in terms of economic growth; however, the difference in social welfare between a decentraliz...

In this paper, a multi-outsourcer and multisupplier R&D outsourcing model with input spillovers is proposed to study the R&D outsourcing policies of outsourcers and R&D suppliers. The optimal outsourcing policies of outsourcers and the optimal investment policies of suppliers are obtained and the effects of outsourcing parameters on the policies of outsourcers and R&D suppliers are analyzed. It...

The article describes a number of operational and methodological contributions in the search for geographically localized knowledge spillovers. The unique focus is on the role of individual inventors, and to examine, at this fundamental level of innovative activity, the impact of geographic distance, time, and political boundaries on transfers of knowledge. The analyses exploit patent citations...