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The impact of R&D on growth through spillovers has been a major topic of economic research over the last thirty years. A central problem in the literature is that firm performance is affected by two countervailing " spillovers " : a positive effect from technological knowledge spillovers and negative business stealing effects from product market rivals. We(More)
This paper studies the unique risk characteristics of organization capital. Using a stock measure of organization capital based on readily available accounting data, we find that firms with more organization capital relative to their industry peers outperform firms with less organization capital by 4.7% per year. A long short portfolio based on the ratio of(More)
We propose uncertainty shocks as a new shock that drives business cycles. First, we demonstrate that microeconomic uncertainty is robustly countercyclical, rising sharply during recessions, particularly during the Great Recession of 2007-2009. Second, we quantify the impact of time-varying uncertainty on the economy in a dynamic stochastic general(More)
There is a popular belief that Chinese imports have devastated US and European manufacturing and contributed to rising inequality. Somewhat paradoxically, the consensus amongst empirical economists is that trade has not been a major cause of rising wage inequality (although this is largely based on datasets predating China's rise). We argue that both views(More)
Are some management practices akin to a technology that can explain company and national productivity, or are do they simply reflect alternative styles? We collect panel data on core management practices in over 10,000 firms in 30 countries. We find large cross country differences , with the US having the highest size-weighted average management score.(More)
  • Scott R Baker, Nicholas Bloom, Steven J Davis, Matt Gentzkow, Kevin Hassett, Greg Ip +11 others
  • 2012
Many commentators argue that uncertainty about fiscal, monetary and regulatory policy slowed recovery from the 2007-2009 recession. To assess this view, we develop a new index of economic policy uncertainty (EPU) that draws on the frequency of newspaper references to policy uncertainty and other indicators. Our index spikes near tight presidential(More)
We build a model of …rm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between high-and low-type …rms, which di¤er in terms of their innovative capacity. We estimate the parameters of the model using detailed US Census micro data on …rm-level output, R&D and patenting. The model(More)
Empirical studies on information communication technologies (ICT) typically aggregate the " information " and " communication " components together. We show theoretically and empirically that these have very different effects on the empowerment of employees, and by extension on wage inequality. If managerial hierarchies are devices to acquire and transmit(More)
Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Abstract We build a model of …rm-level innovation, productivity growth and reallocation featuring endogenous entry and(More)
  • Research Showcase, Cmu, Lee G Branstetter, Raymond Fisman, C Fritz Foley, Kamal Saggi +9 others
  • 2015
The statistical analysis of firm-level data on U.S. multinational enterprises was conducted at the International Investment Division of the Bureau of Economic Analysis, U.S. Department of Commerce under arrangements that maintain legal confidentiality arrangements. The views expressed herein are those of the authors and do not reflect official positions of(More)