Firm Size Distribution and Growth*

Abstract Empirical documentation of the sectoral distribution of firm size for a set of European countries reveals substantial differences. We study the relationship between productivity growth at the industry level and size structure. A positive and robust relation is found between average firm size and growth. We ask why size should matter for growth by considering the role of innovation to construct a test based on the differential effect of size on growth according to various indicators of R&D intensity. Our results indicate that larger size fosters productivity growth because it allows firms to take advantage of all the increasing returns associated with R&D. We argue that our test can be interpreted as a test of reverse causality, which lends support to the view that firm size has a causal impact on growth.     

The Media's Role in Influencing Perceptions of Housing Values and the Resulting Impact on the Macroeconomy

The housing market is a major component of the economy and persistent negative media reports can adversely affect perceptions and expectations of homeowners as to the value of their home. As a result, households reduce their expenditures and increase their savings in an effort to rebuild lost wealth. In the short run the economy suffers and the recession is magnified. This paper demonstrates, through an empirical study, how negative media reports regarding the deteriorating conditions of the national housing market affects what households feel their housing is worth.     

ASSESSING THE EFFECT OF PUBLIC SUBSIDIES ON FIRM R&D INVESTMENT: A SURVEY

This survey examines the empirical literature on the relationship between public R&D subsidies and private R&D investment over the past five decades. The survey reveals a considerable heterogeneity of empirical results that cannot be explained fully by methodological issues. We aim to provide further explanations of the possible causes of that heterogeneity. In particular, we emphasise a set of issues that, in our view, are critical to understanding the potential effect of public R&D subsidies on private R&D spending. Special attention is paid to the dynamic aspects and composition of firm R&D, the constraints faced by the firm (such as financial constraints), and the amount and source of public subsidies. None of these issues have been investigated in depth. We formulate a set of research assumptions to guide future empirical research in this field.     

基于公司不进行正式研发投资的简要探讨

本文我们研究了正式的研发投资的频率。用实物期权和基于知识的观点去解释一个公司的知识资源是怎么影响该公司用于确定技术选择的研发投资频率。详细的说,我们得出一个公司若没有内部知识资源,很可能就总不投资研发;若有内外部知识资源,公司有时投资研发;但有内部知识资源而没有外部知识资源时,公司很可能总是投资研发。     

Preponderance of evidence

This paper investigates the incentive properties of the standard of proof for a finding of negligence when evidence about injurers’ behavior is imperfect. We show that a “more-likely-than-not” decision rule provides maximal incentives for potential tort-feasors to exert care. An injurer is then held liable whenever inadequate care appears more likely than due care, and not liable otherwise. Our analysis provides a deterrence rationale for the exclusionary rules of evidence found in common law and the preponderance of evidence standard of proof.     

Investment in the absence of property rights; the role of incumbency advantages

In many situations the individuals who can generate some output must enter a contest for appropriating this output. This paper analyses the investment incentives of such agents and the role of incumbency advantages in the contest. Depending on the advantages, an increase in the productivity of the investment can decrease or increase the amount of investment. The results are applied to autocrats’ investment behavior and job specific investment in organizations.     

Heuristic learning and the discovery of specialization and exchange

I develop and calibrate an agent-based model of boundedly rational, adaptive agents in a two-good production and exchange economy to replicate human-subject outcomes in the same eight-person experimental economy. To test agents’ ability to capture human behavior, I extend the model and use its output to make predictions about a second experimental environment in which the group of eight agents is slowly constructed by merging smaller groups. This environment improves human-subject performance in the specialization and exchange task, and commensurate improvement emerges for some parameterizations of the agent-based model. This iterative process yields incremental improvement of decision-level theories about economic discovery.     

Construction of D-optimal s 1 × s 2 × s 3 factorial designs using graph theory

In this paper, the maximum determinant of the associated 0-1 matrix in D-Optimal saturated main effect plans for 3× s_2 × s_3 factorials, is derived by the use of Graph theory and Combinatorics. The present work is related to a problem suggested by Chatterjee and Narasimhan (2002). Using the theoretical results, we also give the designs for s₃≥s₂ + 1. This research was supported by the State Scholarships Foundation of Greece.     

US household real net worth through the Great Recession and beyond: Have we recovered?

Household data adjusted for inflation show that net worth is still below its pre-Great Recession levels, unlike aggregate Federal Reserve data. Poorer and younger households both lost and recovered more net worth percentage-wise. Financial assets have recovered more than non-financial assets.     

The disposition effect and loss aversion: Do gender differences matter?

This paper analyzes gender differences in the disposition effect in an experiment based on Weber and Camerer (1998). The results emphasize that female investors realize less capital losses, have significantly higher disposition effects and are more loss averse than men.