Industrial innovation and governmental policy: A review and proposal based on observation of the U.S. electronic sector

The U.S. electronics sector has been particularly successful at technological innovation since the 1940s. This paper addresses governmental policies that influence the process of technological innovation, drawing on aspects of the history of the electronics sector. Three topics receive particular attention—(1) uncertainties, ideas, and imperfect appropriability, (2) returns to R&D and associated investments, and (3) competition and selection environments. As a foundation for this discussion, several conceptual frameworks are briefly described and some classifications for innovation are explored, i.e., by importance (basic/improvement), by locus of change (process/product), by area of application (peaceful/dangerous), by locus of choice (private/public), and by value (worthwhile/not worthwhile). The discussion is underscored by the observation that better links between conceptual understanding and policy formulation are needed in order to derive practical insights into useful actions. One specific policy recommendation is tendered: an income tax credit on earnings of all employees (including salaried staff and managers) of R&D intensive firms. Such a policy would be appropriate from the standpoint of the topics outlined above (i.e., uncertainties, returns to R&D, and competition); the policy would also delegate responsibility for effective use of the subsidy to the employees and firms affected and would directly acknowledge and reward the contributions of individuals—whether in R&D, production, marketing, or support areas—to the innovative capabilities of their firms and the society at large.     

Pairwise kidney exchange

The literature on exchange of indivisible goods finds natural application in the exchange of live donor kidneys for transplant. However, in kidney exchange, there are constraints on the size of exchanges. Initially, kidney exchanges are likely to be between just two patient-donor pairs. We show that, although this constraint eliminates some potential exchanges, there is a wide class of constrained-efficient mechanisms that are strategy-proof when patient-donor pairs and surgeons have 0-1 preferences. This includes deterministic mechanisms that accommodate the priority setting that organ banks currently use to allocate cadaver organs, and stochastic mechanisms that allow distributive justice issues to be addressed.     

Comparison of fruit and vegetable consumption among Native and non‐Native American populations in rural communities

Fruit and vegetable consumption of Native Americans was compared with that of non‐Native Americans and determinants of fruit and vegetable intake for both populations were found based upon the Theory of Planned Behavior. A one‐time survey was conducted as part of a larger research project funded by the South Dakota Department of Health. The survey was administered in local grocery stores and supermarkets in six South Dakota communities, including two located on Native American reservations. Of the 1000 distributed surveys, 499 were returned with 230 being usable, resulting in a response rate of 49.9%. Wilcoxon signed‐rank test and two regression models were tested using SAS 9.2 software. Dependent variables were fruit and vegetable intake. Attitudes towards health, fruit and vegetable consumption, perceived difficulty, subjective norm and intention were also measured. Community size, family income, employment status and participation in food assistance programmes [Supplemental Nutrition Assistance Program or Women, Infants, and Children (SNAP or WIC)] were socio‐demographic control variables. Overall, Native American participants consumed more fruit and vegetables at home and had a more positive attitude towards healthy diets than non‐Native American participants. SNAP or WIC participation, family health, exercise, intention to live healthier than parents, buying healthy food, and fruit and vegetable consumption when eating out were positively associated with fruit and vegetable consumption among Native Americans, while participation in the SNAP or WIC programme had a negative influence on consumption among non‐Native American participants. Family health, exercise, buying healthy food, fruit and vegetable when eating out, and intention to buy healthy food were positively associated with fruit and vegetable consumption among the non‐Native American population. Theory of Planned Behavior variables (e.g. attitude towards healthy food) significantly contributed to the model explaining fruit and vegetable consumption. The fact that SNAP and WIC participation had an opposite influence on the two populations warrants further research.     

Corporate Ownership Structure and the Informativeness of Earnings

This study extends prior studies by examining how managerial ownership and external unrelated blockholdings affect the informativeness of earnings. The results are in contrast to prior studies. A non–linear relation exists between managerial ownership and earnings informativeness. Earnings informativeness increases with managerial ownership at low levels but not at higher levels of managerial ownership where the entrenchment effect sets in. Consistent with the role of large shareholder monitoring, the evidence shows a strong positive relationship between external unrelated blockholdings and earnings informativeness. These results are supported when income–increasing and absolute discretionary accruals are used to measure the extent of earnings management     

Explaining cross-racial differences in teenage labor force participation: Results from a two-sided matching model

White teenagers are substantially more likely to search for employment than black teenagers. This differential occurs despite the fact that, conditional on race, individuals from disadvantaged backgrounds are more likely to search. While the racial wage gap is small, the unemployment rate for black teenagers is substantially higher than that of white teenagers. We develop a two-sided search model where firms are partially able to search on demographics. Model estimates reveal that firms are more able to target their search on race than on age. Employment and wage outcome differences explain half of the racial gap in labor force participation rates.