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  • Patrick Kline, Enrico Moretti, Daron Acemoglu, Raj Chetty, Janet Currie, Yuriy Gorodnichenko +12 others
  • 2014
We study the long run effects of one of the most ambitious place based economic development policies in U.S. history: the Tennessee Valley Authority (TVA). Using a rich panel dataset of counties, we conduct an evaluation of the dynamic effects of the TVA on local economies in the seventy years following the program's inception. We find that the TVA led to(More)
We develop a simple model that links the adoption of a productivity-enhancing technology to increased vertical integration and a less skilled workforce. We test the model's key prediction using novel micro data on vehicle ownership patterns from the Economic Census during a period when computerized dispatching systems were first adopted by taxicab firms.(More)
This paper studies how firms reorganize following diversification, proposing that firms use outsourcing, or vertical disintegration , to manage diseconomies of scope. We also consider the origins of scope diseconomies, showing how different underlying mechanisms generate contrasting predictions about the link between within-firm task heterogeneity and the(More)
We propose that higher skilled firms diversify in equilibrium even though managers exploit idiosyncratic performance shocks to time diversification moves. We formalize this intuition in a mistake-free equilibrium and test our predictions using a large panel dataset on the hedge fund industry 1977-2006. The results show that returns fall following new fund(More)
Entrepreneurs often have prior experience at incumbent firms. We present a new mechanism by which prior employment can influence transitions into entrepreneurship. We propose that some employees divert effort toward unproductive activities to learn about their own fitness for alternative employment. Based on the results of this costly learning experience,(More)
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