We examine the geographic co-location of university research and industrial R&D in three technology areas. While we find strong evidence of co-location of these vertically connected activities, regional economies appear to vary markedly in their ability to convert local academic research into local commercial innovation. We develop and test the hypothesis that the presence of a large, local, R&...

The "big-bang" liberalization of the inefficient Russian economy in 1992 provides a fruitful setting for analyzing the impact of several dimensions of market competition and other factors on enterprise efficiency. We analyze 1992-1998 panel data on 14,961 enterprises covering 75 percent of industrial employment, emphasizing the varied sources, geographic scope, intensity, time path, and surviva...

In this note, we propose a least squares method with l1 penalty (based on the “Lasso”) to estimate models with latent variables. Our approach addresses the high dimensionality of these models, due to the presence of unknown distribution functions. It builds on a recent proposal by Bunea, Tsybakov, Wegkamp and Barbu (2010, Annals of Statistics) that uses penalized least squares for density estim...

I investigate the long-run implications of trade and technology diffusion through trade, when firms are heterogeneous and trade is costly. The paper integrates firm heterogeneity and trade into product innovation growth models from endogenous growth theory. Two specifications of the R&D process are considered. In the first, R&D uses labor and intermediate goods; in the second, it uses labor and...

This paper develops a monopolistic competition model with heterogeneous firms to study the interaction between technology adoption and trade in a world of two countries facing different technology adoption costs. It shows that a reduction in the technology adoption cost in one country increases the productivity, induces more firms to adopt advanced technology, and improves welfare in this count...

The welfare cost of imperfect competition in the product and labor markets in the United States is quantified in a dynamic general equilibrium model. We find that the welfare cost of imperfect competition in the product market is 3.62 percent while it is 0.58 percent in the labor market, taking the transition path from the distorted to the optimal steady state into account. If we also take into...

This paper examines the causes on market concentration in advertisingsupported online markets such as sports, news, and email. In particular, it is the first paper to explore the relationship between concentration and product differentiation, economies of scale, market size, advertising, content costs, and multi-market ownership in online markets. As expected, differentiated large markets with ...

Do multinational Ž rms exhibit different patterns of labor demand from purely domestic Ž rms? Many standardmodels of trade and multinational companies suggest one such differencemay be labor-demand elasticities. For several reasons, multinationalsmay have more-elastic labor demands than do purely domestic Ž rms. In this paper we discuss the theory issues involved. We then present industry-level...

Using a panel data set of 361 German corporations for the period 1991 to 1996 we test the hypothesis that firms with more efficient governance structures have higher profitabilities. To determine efficiency we compare firms with respect to ownership concentration, the identity of owners, capital structure, investment and firm growth by a multi-input/multi-output Data Envelopment Analysis (DEA)....

“Network neutrality” and “open access” are two policies designed to preserve openness on the Internet. Open access mandates openness of conduits (e.g. television cable and DSL) to intermediaries (e.g. America Online), while network neutrality mandates openness to advanced content (streaming video, interactive e-commerce, etc.). We develop a systems model with free entry and competition in all t...