Exploring modern bank penetration: Evidence from early twentieth-century Netherlands

We analyse the estate composition of the richest 30 per cent of people who died in the Netherlands in 1921 to find that households used a broad range of institutions to meet their financial demands. Goods and services were either paid in cash or settled periodically with suppliers. Despite the strong growth of commercial banking in the previous decades, households still made extensive use of peer-to-peer loans, with or without the added security of notarial contracts. Banks only possessed a competitive edge in savings accounts for small surpluses and current accounts, the latter used most frequently by business owners born after 1870. Distance to the nearest bank office did not matter for these people, but wealthy urbanites were more inclined to use banks than their counterparts in the countryside.     

Price impact in Nash equilibria

Finance and Stochastics - We prove global existence of a continuous-time Nash equilibrium with endogenous persistent and exogenous temporary price impact. Relative to the analogous Radner and...     

This is what you came for? University–industry collaborations and follow-on inventions by the firm

The positive impact of university–industry collaborations on firms' innovative performance is well recognized. However, to date, the existing heterogeneity within university–industry collaboration processes and the sources of value creation underlying the resulting inventions are left underexplored. As a result, our understanding as to why some of the joint inventions resulting from such collaborations turn out to present a more fertile source of follow-on developments and value for the collaborating firm than others is limited. The present paper sheds light on this question through the application of a knowledge recombination perspective. Hence, we open the black box of innovation and put a spotlight on the knowledge components that make up the joint inventions resulting from university–industry collaborations. We evaluate how the nature—scientific versus technological—and origins—internal versus external to the collaborating partners—of these knowledge components relate to the inventive impact of the partners' joint invention. Examining a sample of 9102 USPTO co-patents, joint inventions created through university–industry collaborations are shown to be most fertile as a source of firm follow-on inventions when they are the result of a recombination process that includes technological knowledge components stemming from both collaborating partners. This effect is most pronounced when the partners' technological knowledge contributions are moderately similar. In contrast, when the joint technology development takes place in a technology domain that is novel to the firm, the resulting joint inventions are most fertile as a source of firm follow-on inventions when the university contributes through the input of technological knowledge components situated in exactly this technology domain that is novel to the firm. Remarkably, no evidence for such direct effects is found regarding the partners' scientific contributions. Together, these findings provide important insights for firms who intend to spur their internal technology development through collaboration with a university partner.