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This paper investigates the relationship between product market competition (PMC) and innovation. A growth model is developed in which competition may increase the incremental profit from innovating; on the other hand, competition may also reduce innovation incentives for laggards. There are four key predictions. First, the relationship between product(More)
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)
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 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)
U U ncertainty is an amorphous concept. It refl ects uncertainty in the minds of ncertainty is an amorphous concept. It refl ects uncertainty in the minds of consumers, managers, and policymakers about possible futures. It is also a consumers, managers, and policymakers about possible futures. It is also a broad concept, including uncertainty over the path(More)
A long standing question in social science is whether management matters. Certainly management differs across firms, as does performance. However, perhaps every firm chooses its management practices optimally, so that differences across firms simply reflect differences in their environments. To investigate this we run a field experiment on large Indian(More)
We examine the impact of Chinese import competition on patenting, IT, R&D and TFP using a panel of half a million firms 1996-2007. We correct for endogeneity using the removal of product-specific quotas following China's entry into the World Trade Organization. Chinese import competition led to both within firm technology upgrading and between firm(More)
In this chapter we examine the relationship between Human Resource Management (HRM) and productivity. HRM includes incentive pay (individual and group) as well as many non-pay aspects of the employment relationship such as matching (hiring and firing) and work organization (e.g. teams, autonomy). We place HRM more generally within the literature on(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)
For the last decade we have been using double-blind survey techniques and randomized sampling to construct management data on over 10,000 organizations across twenty countries. On average, we find that in manufacturing American, Japanese, and German firms are the best managed. Firms in developing countries, such as Brazil, China and India tend to be poorly(More)