An evolutionary growth model with banking activity

In this paper, we propose an evolutionary growth model in which an innovative production sector interacts with a simplified banking sector. We explore the relationships between long-term sources of growth (technological change) and short-term/mid-term factors (such as price dynamics and interest rates). The model suggests new explanations for the endogenous emergence of sharp crises with profound effects in the long run. An interesting aspect of the model is that these crises appear in a strictly private economy, in which everything produced is sold, and there are neither government distortions nor exogenous shocks. The crises emerge from the interactions between uneven innovation rates and market reactivity. In fact, high reactivity in financial markets can amplify the (initially small) effects of innovative competition, leading to a destabilization of economic growth. Drawing on the results of the model we suggest some policy implications.     

Why does the investment rate not increase? Capital accumulation and stabilization policy in the 1990s and 2000s in Brazil

The stabilization of inflation was conquered in the mid-1990s, but since then the Brazilian economy has not shown a stable growth trend. This article discusses how the maintenance of a high interest rate in Brazil has affected growth through its impact on investment decision. In a macroeconomic environment with a relatively high degree of uncertainty, decisions to accumulate capital rely heavily on retained earnings and are negatively affected by the persistent high level of interest rates. Our econometric exercise reveals that the interest rate is the most important variable to explain the investment rate, and that financialization negatively impacts physical capital accumulation.     

Technological,management, and persistent innovation in small and medium family firms: The influence of professionalism

We examine the effect of professional management on innovation in family‐owned firms. Since professionalism is a critical but controversial issue that can influence the innovative capacity of family businesses, we aim to determine if professional management improves innovation outcomes from a comprehensive perspective. Using a sample of 583 Spanish family firms, we demonstrate that professionalism in management exerts a positive influence on innovation from both technological (product and process innovation) and management perspectives. We also find that firms managed by external professionals are willing to develop higher innovative activity and that professionalism contributes positively to persistent innovation. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

Stock and Mobility of Researchers and Industrial Leadership

We propose an evolutionary model which shows the relevance of the stock and mobility of researchers in explaining industrial leadership and catch‐up. Likewise, it shows how leading firms and nations may benefit from their competitors' investments in scientific training. On the other hand, international knowledge diffusion may jeopardize apparently solid leadership positions. Thus, under certain conditions, technological convergence at a worldwide level mitigates the migrant‐sending role of emergent nations. In fact, taking advantage of knowledge diffusion to make the transition from migrant‐sending to migrant‐receiving nation proves to be a source of leadership in the model.     

Fiscal institutions and public spending volatility in Europe

This work provides empirical evidence for a sizeable, statistically significant negative impact of the quality of fiscal institutions on public spending volatility for a panel of 23 EU countries over the 1980–2007 period. The dependent variable is the volatility of discretionary fiscal policy, which does not represent reactions to changes in economic conditions. Our baseline results thus give support to the strengthening of institutions to deal with excessive levels of discretion volatility, as more checks and balances make it harder for governments to change fiscal policy for reasons unrelated to the current state of the economy. Our results also show that bigger countries and bigger governments have less public spending volatility. In contrast to previous studies, the political factors do not seem to play a role, with the exception of the Herfindahl index, which suggests that a high concentration of parliamentary seats in a few parties would increase public spending volatility.     

ENDOGENOUS CYCLICAL GROWTH WITH A SIGMOIDAL DIFFUSION OF INNOVATIONS

The model we propose in this paper is an extension of the one described in Freeman et al. [Freeman, S., Hong, D. and Peled, D. (1999) Endogenous Cycles and Growth with Indivisible Technological Developments. Review of Economics Dynamics, 2, 403–432]. In our model, we incorporate the process of diffusion of major innovations and analyze macroeconomic effects on consumption, capital and aggregate output. Following Bresnahan and Trajtenberg [Bresnahan, T. and Trajtenberg, M. (1995) General Purpose Technologies: Engines of Growth?. Journal of Econometrics, 65, 83–108.], Helpman [Helpman, E. (ed.) (1998) General Purpose Technologies and Economic Growth. MIT Press] and Lipsey et al. [Lipsey, R.G., Carlaw, K. and Bekar, C. (2005) Economic Transformations: General Purpose Technologies and Long Term Economic Growth. Oxford University Press.] we assimilate major innovations with the emergence of certain GPTs, and we suggest that the diffusion process for these technologies, at a large scale, might follow an S-shaped pattern. The proposed model presents optimum stationary solutions which are cyclical and have a wave dynamic within each cycle. The cycles are characterized by certain co-movements in consumption, R&D investment, capital accumulation and output. Consideration of the innovation diffusion process highlights new aspects of endogenous cycles and long-run growth.     

Trade policy and wage gradients: evidence from a protectionist turn

In the spirit of Hanson (Econ J 107:113–133, 1997), we analyse, first, the existence of a relationship between the wage level and the market potential of Spanish regions; second, we explore the relative importance of domestic and foreign markets in this relationship; and finally, we examine the existence of a regional nominal wage gradient in Spain during the interwar period (1914–1930) centred on the main industrial cluster, Barcelona, and its transformation following the increase in protectionism in the Spanish economy as well as in the international economy. As suggested by NEG literature, our results support the hypothesis of a relationship between wages and regional market access and show the change in the regional wage structure following the gradual closing of the Spanish economy and of Spain’s trade partners, as a result of the increasing importance of the domestic market. We find evidence of the existence of a regional wage gradient centred on Barcelona which weakened during these years. Therefore, in Spain, during the interwar period, protectionist policies appear to have favoured the loss of centrality of a border region (Barcelona) and the relative rise of other locations.     

An independent assessment of the unidimensionality,reliability, validity and factor structure of the LibQUAL+™ scale

This empirical study provides a thorough measurement analysis of the LibQUAL+? scale for measuring library service quality. In particular, the study assesses the unidimensionality of the scale, the scale's psychometric properties and its factor structure. Data were gathered using a self-administered questionnaire distributed to a sample of university library users: 189 in Canada and 374 in Mexico. Using confirmatory factor analysis (CFA), the study confirms the assumption of unidimensionality in only two of the three current sub-dimensions of the scale. The results of this study also show that the LibQUAL+? scale consists of four dimensions. The remainder of the CFA results in the study provides strong support for the general reliability and validity of the four-dimensional structure.