Stories from the field: women’s networking as gender capital in entrepreneurial ecosystems

Small Business Economics - Women are under-represented in successful entrepreneurial ecosystems and the creation of women-only entrepreneurial networks has been a widespread policy response. We...     

Production Technology Estimates and Balanced Growth

Capital‐labour substitution and total factor productivity (TFP) estimates are essential features of many economic models. Such models typically embody a balanced growth path. This often leads researchers to estimate models imposing stringent prior choices on technical change. We demonstrate that estimation of the substitution elasticity and TFP growth can be substantially biased if technical progress is thereby mis‐specified. We obtain analytical and simulation results in the context of a model consistent with balanced and near‐balanced growth (i.e. departures from balanced growth but broadly stable factor shares). Given this evidence, a constant elasticity of substitution production function system is then estimated for the US economy. Results show that the estimated substitution elasticity tends to be significantly lower using a factor‐augmenting specification (well below one). We are also able to reject conventional neutrality forms in favour of general factor augmentation with a non‐negligible capital‐augmenting component. Our work thus provides insights into production and supply‐side estimation in balanced‐growth frameworks.     

Consultation and communication in family businesses in Great Britain

Nationally representative data on family businesses are available in the 1998 Workplace Employee Relations Survey, alongside comparable information for other types of firms. We use these data to compare differences in the use of different consultation and communication procedures. We cover such practices as the use of direct communication schemes (e.g. briefings; the provision of information on financial performance to the workforce) as opposed to indirect methods such as the use of joint consultative committees. There is an a priori expectation in the literature that family-owned businesses are either more likely to use direct forms of communication (vis-à-vis indirect forms) or that they will not be involved in direct communication or consultation with their employees, and we test this using multivariate techniques. Finally, we consider whether the type of consultation/communication structure matters in terms of establishment performance, and what differences exist with respect to family-owned businesses. In particular, this paper tests if those firms that consult directly with staff, as opposed to those that consult through joint consultative committees or trade unions, have higher productivity and/or other measures of performance. Concurrently we test whether there are separate ‘family business’ effects or whether it is generally establishment size that ‘matters’, by estimating a model for family-owned and non-family-owned establishments. In general, our results show that not only do family-owned establishments have lower levels of communication and consultation, but, when the latter is present, this does not generally translate into greater economic benefits (as is the case in non-family-owned firms).     

UNEMPLOYMENT, HYSTERESIS AND TRANSITION

In this paper, we quantify the degree of persistence in the unemployment rates of transition countries using a variety of methods benchmarked against the EU. Initially, we work with the concept of linear ‘Hysteresis’ as described by the presence of unit roots in unemployment as in most empirical research on this area. Given that this is potentially a narrow definition, we also take into account the existence of structural breaks and nonlinear dynamics in unemployment. Finally, we examine whether CEECs' unemployment presents features of multiple equilibria, that is, if it remains locked into a new level whenever some structural change or sufficiently large shock occurs. Our findings show that, in general, we can reject the unit‐root hypothesis after controlling for structural changes and business‐cycle effects, but we can observe the presence of a high and low unemployment equilibria. The speed of adjustment is faster for CEECs than the EU, although CEECs tend to move more frequently between equilibria.     

Disaggregate Real Exchange Rate Behaviour

In this paper, we re-examine the “PPP Puzzle” using sectoral disaggregated data. Specifically, we first analyse the mean reversion speeds of real exchange rates for a number of different sectors in 11 industrial economies and then focus on relating these rates to variables identified in the literature as key determinants of CPI-based real exchange rates, namely: the trade balance, productivity and the mark up. In particular, we seek to understand to what extent the relationships existing at the aggregate level are borne out at the disaggregate level. We believe that this analysis can help shed light on the PPP puzzle.

Immanuel Kant and Endogenous Growth Theory

Despite the modern origins of endogenous growth theory, we argue that the ‘Idea for a Universal History with a Cosmopolitan Aim’ written by Immanuel Kant in 1784 provides an early and coherent example of such a theory. Kant's endogenous growth mechanism is driven by the inherent rivalry that exists between agents which increases effort and strengthens the accumulation of knowledge, which in turn is carried through generations. In an exercise in ‘rational reconstruction’, we present a mathematical model of Kant's mechanism. We use the model to contribute to the contemporary policy debate as to whether ‘keeping up with the Joneses’ leads to excessive effort.     

University business models in disequilibrium – engaging industry and end users within university technology transfer processes

This article explores how greater engagement with industry and end users has influenced the University Technology Transfer Business Model. In order to achieve this, they adopted a qualitative methodology which draws upon case study evidence of two case universities located in a particular region. The findings, represented in a conceptual framework depict a hybrid University Technology Transfer Business Model which is in a state of permanent disequilibrium as a result of path dependency and organisational culture. This permanent disequilibrium was found to cause challenges in relation to scarce resource allocation and also impacted upon the willingness and ability of academics to engage with industry and end users throughout the technology transfer process. This article contributes to an emerging stream of research on hybrid business models by identifying the challenges of permanent disequilibrium where multiple and conflicting stakeholder goals compete for legitimacy and scarce resources. From a policy and practitioner viewpoint, this research draws attention to the complexities of university, government, industry and end user (Quadruple Helix stakeholders) engagement and the implications of such on university strategy where conflicting dominant logics can cause challenges with alignment of organisational processes and mechanisms.     

THE NORMALIZED CES PRODUCTION FUNCTION: THEORY AND EMPIRICS

Abstract The elasticity of substitution between capital and labor and, in turn, the direction of technical change are critical parameters in many fields of economics. Until recently, though, the application of production functions with specifically non‐unitary substitution elasticities (i.e., non‐Cobb–Douglas) was hampered by empirical and theoretical uncertainties. As recently revealed, ‘normalization’ of production‐technology systems holds out the promise of resolving many of those uncertainties. We survey and assess the intrinsic links between production (as conceptualized in a production function), factor substitution (as made most explicit in Constant Elasticity of Substitution functions) and normalization (defined by the fixing of baseline values for relevant variables). First, we recall how the normalized Constant Elasticity of Substitution function came into existence and what normalization implies for its formal properties. Then we deal with the key role of normalization in recent advances in the theory of business cycles and of economic growth. Next, we discuss the benefits normalization brings for empirical estimation and empirical growth research. Finally, we identify promising areas of future research.     

Openness,Efficiency and Technology: An Industry Assessment

Most trade and macroeconomic models imply positive impacts on the economy from greater openness. And a key factor linking openness and progress is the efficiency with which resources are used. Empirically, however, the efficiency impacts of trade have been ambiguous. Using a stochastic frontier analysis, we examine the impact of openness on technical (in)efficiency for a sample of OECD economies. Unlike the bulk of related studies, we work at the industry level. Given recent debates, we additionally examine whether Information and Communication Technologies (ICT) expenditures impact openness and efficiency. We establish the elasticity of openness with respect to (in)efficiency; TFP and Scale Economies; and Technical Inefficiency across countries and sectors. Both openness and ICT usage have robustly positive impacts on efficiency. Our results shed light on the impact of, spillovers between, and heterogeneity across countries and industries from, increasing openness interacted with the use of advanced technologies.