Does intellectual monopoly stimulate or stifle innovation?

This study develops an R&D-based growth model with vertical and horizontal innovation to shed some light on the current debate on whether patent protection stimulates or stifles innovation. We analyze the effects of patent protection in the form of blocking patents. We show that patent protection changes the direction of innovation by having asymmetric effects on vertical innovation (i.e., quality improvement) and horizontal innovation (i.e., variety expansion). Calibrating the model and simulating transition dynamics, we find that strengthening the effect of blocking patents stifles vertical innovation and decreases economic growth but increases social welfare due to an increase in horizontal innovation. In light of this finding, we argue that in order to properly analyze the growth and welfare implications of patents, it is important to consider their often neglected compositional effects on vertical and horizontal innovation.     

Organizational career management practices and objective career success: A systematic review and framework

The theorization of the relationship between organizational investments in career development and individual success remains underdeveloped, and empirical tests of this relationship, which have been dispersed among several disciplinary areas, have produced inconsistent results. Addressing these issues, the purpose of this article is to propose a theoretical framework that illustrates why and how organizational career management practices translate into career success and under what circumstances the relationship is effective. Using a systematic review of empirical studies on career management practices and objective success, we identify three theoretical mechanisms - developmental, informational, and relational - and two groups of contingency factors that explain this relationship. Our framework advances the extant literature on organizational career management and provides suggestions to companies for designing effective career management systems.     

Obstacles and solutions on the ladder of citizen participation: a systematic review

This article presents a systematic review of the English-language empirical literature about citizen participation to identify the obstacles to its implementation and the most successful ways to address them. Three sets of variables seem to impact effectiveness: contextual factors, including information asymmetries and public officials’ attitude; organizational arrangements, including community representation criteria and process design; and process management patterns, including group dynamics and collaboration quality. Two recommendations stem from our analysis: internalize decisions in organizational procedures, and establish ongoing interactions between government bodies and their stakeholders. We conclude that half-hearted engagement is unlikely to lead to successful citizen participation.     

The transmission of partner mental health to individual life satisfaction: Estimates from a longitudinal household survey

This paper investigates the relationship between partner's mental health and individual life satisfaction, using panel data and calculating the monetary valuation of mental illness. Accounting for measurement error and endogeneity of income, partners' mental health has a significant association with individual well-being. The additional income needed to compensate someone living with a partner with a mental condition is substantial (ranges between USD 33,000 and USD 50,000). Further, individuals do not show adaptation to partners' mental illness. The results have implications for policy-makers wishing to value the effects of policies that aim to impact on mental health and levels of well-being.     

Modeling node heterogeneity in latent space models for multidimensional networks

Multidimensional network data can have different levels of complexity, as nodes may be characterized by heterogeneous individual-specific features, which may vary across the networks. This article introduces a class of models for multidimensional network data, where different levels of heterogeneity within and between networks can be considered. The proposed framework is developed in the family of latent space models, and it aims to distinguish symmetric relations between the nodes and node-specific features. Model parameters are estimated via a Markov Chain Monte Carlo algorithm. Simulated data and an application to a real example, on fruits import/export data, are used to illustrate and comment on the performance of the proposed models.     

A New Framework to Estimate the Near-Term Path of the Fed Funds Rate

We propose a forward-looking method to estimate the path for the federal funds target rate. We utilize six-month out probabilities of inflationary and disinflationary pressures, along with a labor market index, to estimate the fed funds rate. We further suggest that due to the changing nature of economies and impending risks to the economic outlook, a time-varying method (consistent with the nature of risks) would help decision makers to improve effective decision making. Our econometric results suggest disinflation (or disinflationary pressure), not inflationary pressure, best explains fed funds rate movements from the 1990s forward. Based on June 2016 data, there is a 55 percent chance that the inflation rate would stay below 1.5 percent during the next six months. The recent higher disinflationary pressure probability may be one reason the FOMC has repeatedly lowered its path for the fed funds rate. Unfortunately, the low-inflation zombie is real.     

Is Predicting Recessions Enough?

We propose an ordered probit framework to simultaneously predict the probabilities of recession, weaker recovery, and stronger recovery. Our approach helps identify (a) whether the next phase is a recession, (b) when the recovery period starts, and (c) whether the recovery would be a weak or strong one compared to historical standards. We believe our approach would help policy makers decide when would be appropriate to (1) start expansionary policies (higher probabilities of recession), (2) continue expansionary policies (higher probabilities of weaker recovery), or (3) turn to neutral/contractionary policies (higher probabilities of stronger recovery). The ordered probit model shows the probabilities of recession staying above 50 percent during all five recessions in our simulated out-of-sample analysis of 1980:Q1–2016:Q1. The probabilities of weaker recovery are consistent with actual periods of below trend growth. Based on 2016:Q1 data, the model suggests a meaningfully higher chance of continuing below trend growth. One key result is that the probability of weaker growth has been persistently higher than the other two scenarios for the past several years. These higher probabilities of weak growth are consistent with the accommodative monetary policy stance of the past eight years.     

The entrepreneurial motivation in academia: a multidimensional construct

In this paper we propose a model to analyse the motivation of academic entrepreneurs that comprises six dimensions: personal, relating to the entrepreneurial opportunity, to scientific knowledge, to the availability of resources, to the incubator organization, and to the social environment. The model is tested based on information from a survey administered to 152 Spanish academic entrepreneurs. Our results show that entrepreneurial opportunity is not part of the entrepreneurial motivation, but is of the utmost importance to academic entrepreneurs. Also, we find the scientific knowledge is the main driver of entrepreneurial activity in the academia.     

Optimal investment models with vintage capital: Dynamic programming approach

The dynamic programming approach for a family of optimal investment models with vintage capital is here developed. The problem falls into the class of infinite horizon optimal control problems of PDE’s with age structure that have been studied in various papers (12, 11, 33 and 35) either in cases when explicit solutions can be found or using Maximum Principle techniques.     

Opening and linking up: firms,GVCs, and productivity in Latin America

This work explores the relationship between exports, global value chains (GVCs)’ participation and position, and firms’ productivity. To this aim, we combine the most recent World Bank Enterprise Survey in Latin American and Caribbean (LAC) countries with the Organisation for Economic Co-operation and Development and World Trade Organization trade in value-added data. To explore the above relationship, we adopt an extended version of the standard Cobb-Douglas output function including indicators of export performance and GVCs. We control for heterogeneity among firms (by country, region, and industry), sample selection, firms’ characteristics, and reverse causality. Our empirical outcomes confirm the presence of a positive relationship between participation in international activities and firm performance. They also show that both participation in GVCs and position within GVCs matter. These findings have strong policy implications and may help policymakers in choosing the best policy options to enhance the link between GVCs’ integration and firms’ productivity.