Found 1241 article(s) in category 'Economic Growth'

Integrated Strategy: Residual Market Imperfections as the Foundation of Sustainable Competitive Advantage

Integrated Strategy: Residual Market Imperfections as the Foundation of Sustainable Competitive Advantage. Felix Oberholzer-Gee, Dennis Yao, February 1, 2017, Paper, “Market imperfections are central to understanding the mechanisms that permit firms to capture value. Through competition leading firms often reduce these imperfections, making markets more efficient. The remaining imperfections become a primary impetus for government intervention. Hence, understanding residual market imperfections – those imperfections that persist after market competition and regulation are accounted for – must undergird any assessment of the long-term attractiveness of firm strategies. Our proposed framework provides an integrated view of competition and government intervention, two of the principal forces that influence variation in firm profitability.Link

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Concentrating on the Fall of the Labor Share

Concentrating on the Fall of the Labor Share. Lawrence Katz, January 2017, Paper, “The recent fall of labor’s share of GDP in numerous countries is well-documented, but its causes are poorly understood. We sketch a “superstar firm” model where industries are increasingly characterized by “winner take most” competition, leading a small number of highly profitable (and low labor share) firms to command growing market share. Building on Autor et al. (2017), we evaluate and confirm two core claims of the superstar firm hypothesis: the concentration of sales among firms within industries has risen across much of the private sector; and industries with larger increases in concentration exhibit a larger decline in labor’s share.Link

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The Political Economy of Transportation Investment

The Political Economy of Transportation Investment. Edward Glaeser, January 2017, Paper, “Will politics lead to over-building or under-building of transportation projects? In this paper, we develop a model of infrastructure policy in which politicians overdo things that have hidden costs and underperform tasks whose costs voters readily perceive. Consequently, national funding of transportation leads to overspending, since voters more readily perceive the upside of new projects than the future taxes that will be paid for distant highways. Yet when local voters are well-informed, the highly salient nuisances of local construction, including land taking and noise, lead to under-building. This framework explains the decline of urban mega-projects in the US (Altshuler and Lubero§ 2003) as the result of increasingly educated and organized urban voters. Our framework also predicts more per capita transportation spending in low-density and less educated areas, which seems to be empirically correct.Link

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Lawrence Summers on the Risks of President-Elect Trump

Lawrence Summers on the Risks of President-Elect Trump. Lawrence Summers, January 20, 2017, Video, “Harvard University President Emeritus and Former U.S. Treasury Secretary Lawrence Summers explains the risks he sees related to the policies of President-elect Donald Trump and warns that business may regret “enabling” Trump. He speaks from the World Economic Forum in Davos, Switzerland on “Bloomberg Surveillance.”Link

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The Recent Growth Boom in Developing Economies: A Structural-Change Perspective

The Recent Growth Boom in Developing Economies: A Structural-Change Perspective. Dani Rodrick, January 2017, Paper, “Growth has accelerated in a wide range of developing countries over the last couple of decades, resulting in an extraordinary period of convergence with the advanced economies. We analyze this experience from the lens of structural change – the reallocation of labor from low- to high-productivity sectors. Patterns of structural change differ greatly in the recent growth experience. In contrast to the East Asian experience, none of the recent growth accelerations in Latin America, Africa, or South Asia was driven by rapid industrialization. Beyond that, we document that recent growth accelerations were based on either rapid within-sector labor productivity growth (Latin America) or growth-increasing structural change (Africa), but rarely both at the same time.Link

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Urban Economics for the Developing World: An Introduction

Urban Economics for the Developing World: An Introduction. Edward Glaeser, 2017, Paper, “This is an introduction to the special issue of the Journal of Urban Economics on “Urbanization in Developing Countries: Past and Present”. We argue that the rapid urbanization and the rise of cities in the developing world demand new avenues of research and much more research to deal with the urban issues facing billions of people across the world that current work barely covers. This issue contains papers which move in that direction and signals a commitment by the journal to pursue this agenda.LInk

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The Crisis of the Middle Class: Davos Panel

The Crisis of the Middle Class: Davos Panel. Lawrence Summers, January 18, 2017, Video, “IMF Managing Director Christine Lagarde, Italian Economy and Finance Minister Pier Carlo Padoan, Harvard University President Emeritus Larry Summers, Bridgewater Chairman Ray Dalio, and Brazillian Finance Minister Henrique Meirelles discuss the global challenges facing the middle class with Bloomberg’s Francine Lacqua on the Crisis in the Middle Class panel at the World Economic Forum in Davos on Wednesday.Link

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