Found 303 article(s) in category 'Innovation'

The ICT Revolution, World Economic Growth, and Policy Issues

The ICT Revolution, World Economic Growth, and Policy Issues. Dale Jorgenson, February 1, 2016, Paper. “The ICT revolution fueled by the exponential progress of the semiconductor technology and the accelerated pace of globalization has become an important driver of economic growth across nations. In this rapidly changing landscape, the world economy is entering into a New Economic Order, in which developing Asia led by two fast-growing giant economies, China and India, will have much larger impacts on the world economy. This paper provides empirical evidence on these phenomena and highlights policy issues that deem important for a country to seize the ICT revolution for promoting economic growth.Link

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Peer-to-Peer Rental Markets: Some Thoughts on the “Sharing Economy”

Peer-to-Peer Rental Markets: Some Thoughts on the “Sharing Economy.” Richard Zeckhauser, January 21, 2016, Paper. “Recent technological advances and entrepreneurial efforts have created a number of new peer-to-peer rental markets in which owners can rent out their durable goods. We consider the emergence of such a market and determine the market clearing rental rate, the patterns of trade and the surplus unlocked for different types of consumers. Our analysis considers both a short-run, before consumers can revise their ownership decisions and a long-run, in which they can. A survey of consumers finds broad support for the modeling conventions used—namely that ownership is determined by a forward-looking evaluation of planned usage. We also explore the factors that are permitting these new markets to flourish …Link

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The Impact of Information Technology on Postwar US Economic Growth

The Impact of Information Technology on Postwar US Economic Growth. Dale Jorgenson, November 28, 2015, Paper. “We provide detailed information on the crucial role of information technology in the postwar growth of the U.S. economy, from the development of the telecommunications services and the telecommunications equipment industries through the successful commercialization of semiconductor technology and the ongoing shift to cloud-based IT services. Our industry-level data set reveals that productivity gains over the postwar period originated disproportionally in industries that produce IT, but the replication of established technologies through growth of capital and labor inputs explains by far the largest proportion of U.S. economic growth. We find that the substantial growth deceleration during the Great Recession was driven by modestly negative aggregate productivity growth, but that only a minor portion of the drop in the growth rate was due to the IT-producing industries.Link

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Work and Consumption in an Era of Unbalanced Technological Advance

Work and Consumption in an Era of Unbalanced Technological Advance. Benjamin Friedman, November 9, 2015, Paper. “Keynes’s “Grandchildren” essay famously predicted both a rapid increase in productivity and a sharp shrinkage of the workweek – to 15 h – over the century from 1930. Keynes was right (so far) about output per capita, but wrong about the workweek. The key reason is that he failed to allow for changing distribution. With widening inequality, median income (and therefore the income of most families) has risen, and is now rising, much more slowly than he anticipated. The failure of the workweek to shrink as he predicted follows. Other factors, including habit formation, socially induced consumption preferences, and network effects are part of the story too. Combining the analysis of Keynes, Meade and Galbraith suggests a way forward for economic policy under the prevailing circumstances.Link

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The Measurement of Bridging Social Capital in Population Health Research

The Measurement of Bridging Social Capital in Population Health Research. Ichiro Kawachi, November 1, 2015, Paper. “Social capital is defined as the resources available to individuals and groups through membership in social networks. The definition is consistent with either an individualistic approach or a collective approach. Social capital can be further classified according to bonding versus bridging social capital (e.g. relationships between individuals who are homogeneous or heterogeneous with respect to social class, race/ethnicity, or other attributes). We conducted a systematic review via Pubmed, the ISI web of knowledge…” Link

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On Interesting Policymakers

On Interesting Policymakers. Cass Sunstein, November 2015, Opinion. “If a nation created a Council of Psychological Science Advisers, what would it do? The closest analogy in the United States, of course, is the Council of Economic Advisers (CEA), whose advice often matters a great deal. The reason is not typically that the CEA offers interesting or novel academic findings. It is that public officials want to solve concrete policy problems, and the CEA (and other economists, found throughout the national government) can help them to do so. Suppose that the President of the United States wants his advisors to decide whether to adopt a “cash for clunkers” program, by which the government provides money to subsidize people who trade in their old vehicles for new ones. If the President seeks to stimulate the economy, and also to produce environmental improvements, economists will provide indispensable guidance (above all by projecting the results of the program with a useful cost–benefit analysis).Link

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Reflecting on Work Improves Productivity

Reflecting on Work Improves Productivity. Francesca Gino, October 5, 2015, Opinion. “Professor Francesca Gino of Harvard Business School was in India recently to conduct a module on negotiations for an executive education program of HBS in Mumbai. In an interview with BusinessLine she explains that her course is about helping people use ideas and tools, and construct frameworks to help them negotiate better. Edited excerpts: What can HR managers do to improve productivity at workplaces? I’ll give you an example. There was this Indian company where we did a project in helping them deal with the issue of labour turnover. They were spending…” Link

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Healthcare Exceptionalism? Performance and Allocation in the U.S. Healthcare Sector

Healthcare Exceptionalism? Performance and Allocation in the U.S. Healthcare Sector. Amitabh Chandra, October 1, 2015, Paper. “The conventional wisdom in health economics is that idiosyncratic features of the healthcare sector leave little scope for market forces to allocate consumers to higher performance producers. However, we find robust evidence across a variety of conditions and performance measures that higher quality hospitals tend to have higher market shares at a point in time and expand more over time. Moreover, we find that the relationship between performance and allocation is stronger among patients who have greater…” Link

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The ABCs of Financial Education: Experimental Evidence on Attitudes, Behavior, and Cognitive Biases

The ABCs of Financial Education: Experimental Evidence on Attitudes, Behavior, and Cognitive Biases. Shawn Cole, September 2015, Paper. “This paper uses a large scale field experiment in India to study attitudinal, behavioral, and cognitive constraints that stymie the link between financial education and financial outcomes. The study complements financial education with (i) participant classroom motivation with pay for performance on a knowledge test, (ii) intensity of treatment with personalized financial counseling, and (iii) behavioral nudges with financial goal setting. The analysis finds no impact of pay for performance …” Link

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Growth & Shared Prosperity

Growth & Shared Prosperity. Karen Mills, Joseph Fuller, and Jan Rivkin, September 23, 2015, Paper. “In June 2015, nearly 75 experienced leaders from across business, government, labor, academia, and media gathered at Harvard Business School to discuss a topic of increasing concern in America: How can our nation continue to remain competitive while also providing a path to prosperity for more citizens? This report highlights the group’s deliberations and summarizes the HBS research that was presented during the convening …” Link

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