High Technology Employment,Wages And University R&D Spillovers: Evidence From Us Cities

Using 4 years of data from 36 American cities and 6 high technology groupings we present thc first estimates of University R&D spillover effects on ctnployrnent at this level of disag-gregation, while controlling for wages, prior innovations, state fixed efrccts, and saniple selectivity hias. We find robust evidence that lagged and disaggrcgated university R&D is a significant determinant of city high technology employment and some evidence for employment effects of innovation.     

Déjà vu Geopolitics: Marxism and the Geopolitical Undead

Undead, unkillable and uncannily, unceasingly trendy, ‘geopolitics’ strikes again. Marxist geopolitics could have been a good idea - for Marxists at least. This version doesn't work for two reasons: first, its emphasis on the inter-relationship between territory, capitalism and power makes it virtually indistinguishable from Marxism writ large; and second, it re-legitimates some of the familiar yet noxious tropes of classical geopolitics.     

Capacity Constrained Firms and Expansion Subsidies: Should Governments Avoid Generous Subsidies?

This paper examines entry deterrence and signaling when an incumbent firm experiences capacity constraints. Our results show that if the costs that constrained and unconstrained incumbents incur when expanding their facilities are substantially different, separating equilibria can be supported under large parameter values whereby information is perfectly transmitted to the entrant. If, in contrast, both types of incumbent face similar expansion costs, subsidies that reduce expansion costs can help move the industry from a pooling to a separating equilibrium with associated efficient entry. Nonetheless, our results demonstrate that if subsidies are very generous entry patterns remain unaffected, suggesting a potential disadvantage of policies that significantly reduce firms’ expansion costs.     

Enriching Intergenerational Decision-Making with Guided Visualization Exercises

Seriously engaging with the needs, hardships, and aspirations of future generations is an emotional experience as much as an intellectual endeavor. In this essay we describe a guided visualization exercise used to overcome the emotional barriers that often prevent us from dealing effectively with intergenerational decisions. The meditation and dreaming technique was applied to a diverse group of researchers who engaged in a visualized encounter with future generations. Following the exercise, we concluded that a serious analysis of intergenerational conflict requires us to confront our own mortality. Also, somewhat surprisingly to workshop participants, our desire to become stewards of the planet was driven by our fear of death as well as our egoist yearning for immortality. We posit that imagining the unknown with visioning practices might increase our emotional resilience, and hence improve our ability to confront the burdens of intergenerational responsibility.     

A Maturity Model for Management Control Systems

Corporate management in today’s international companies has become increasingly complex. To cope with the growing challenges, information technology (IT)-based management control systems (MCSs) covering reporting, planning, and consolidation have been deployed. Despite their tradition in management research, the ‘right’ setup of MCSs is still challenging. Maturity models (MMs) are an established instrument to identify strengths and weaknesses of certain domains. As existing MMs rather focus on single MCS domains, neglect an IT perspective and miss a sound methodical foundation, this paper outlines an empirically and algorithmically constructed MCS MM. The model consists of three partial MMs for reporting, planning, and consolidation, which are integrated into one holistic MCS MM. The five levels of the MCS MM guide MCS evolution from a basic, mandatory/external-driven MCS (level 1) to a balanced MCS (level 2), and a comprehensive MCS (level 3). Ultimately, MCSs show a strong strategic focus (level 4) and leverage the potentials of modern IT (level 5).     

Optimal democratic mechanisms for taxation and public good provision

We study the interdependence of optimal tax and expenditure policies. An optimal policy requires that information on preferences is made available. We first study this problem from a general mechanism design perspective and show that efficiency is possible only if the individuals who decide on public good provision face an own incentive scheme that differs from the tax system. We then study democratic mechanisms with the property that tax payers vote over public goods. Under such a mechanism, efficiency cannot be reached and welfare from public good provision declines as the inequality between rich and poor individuals increases.     

The Spatial Range of Public Goods Revealed Through Referendum Voting

Billions of dollars are now spent annually in the United States and Europe for spatially delineated environmental services such as agricultural landscape management and river restoration programs, yet little is known about the spatial distribution of the benefits from these policies. This paper develops a framework for recovering information on this question from the spatial pattern of votes cast for referenda on the provision of spatially delineated public goods. We specify a model linking voter support for environmental improvement to the distance at which such improvements are expected to occur. The empirical application is to a river restoration referendum in the Swiss canton of Bern. Our results indicate that the benefits from river restoration have a strong local component, sufficiently strong that voter approval would not occur if only canton-wide benefits were at stake. Surprisingly, support for river restoration is no greater, and in some specifications is actually lower, in locations where rivers are a prominent feature in the environment.