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January 8, 2010
Other Article

Multinational Firms, Agglomeration, and Global Networks

By: Laura Alfaro and Maggie Chen

Agglomeration effects are important but difficult to measure. This column uses a new database with precise geographical information to investigate the locational interdependence of multinational firms. Knowledge spillovers and capital- and labour-market externalities... View Details

Keywords: Geographic Location; Business Subsidiaries; Industry Clusters; Multinational Firms and Management; Network Effects

We explore the impact of geographically bounded intra-firm spillovers (internal agglomeration economies) and geographically bounded inter-firm spillovers (external agglomeration economies) on firms’ location strategies. Using data from the Census Bureau’s Longitudinal... View Details

2024
Working Paper

The Pay of Finance Professors

By: Claire Célérier, Boris Vallée and Alexey Vasilenko

This paper documents the existence of a significant wage finance premium in academia, and investigates its underlying mechanism. By exploiting an extensive dataset covering wages, publications and socio-demographics for 60,000 public-university faculty from all fields,... View Details

Keywords: Finance Wage Premium; Finance Academia; Wages; Higher Education

June 2014
Article

Frictions in Shadow Banking: Evidence from the Lending Behavior of Money Market Funds

By: Sergey Chernenko and Adi Sunderam

We document the consequences of money market fund risk taking during the European sovereign debt crisis. Using a novel data set of security-level holdings of prime money market funds, we show that funds with large exposures to risky Eurozone banks suffered significant... View Details

Keywords: Money Market Mutual Funds; European Sovereign Debt Crisis; Runs; Contagion; Risk Taking; Investment Funds; Financial Crisis; Europe

March 2013
Case

Currency Wars

By: Laura Alfaro and Hilary White

In February 2013, the G-20 finance ministers met in Moscow, Russia to discuss the rising anxieties over a potential international currency war. It was speculated that certain countries were purposely devaluing their currencies in order to improve their competitiveness... View Details

Keywords: Currency; Competitiveness; Trade Policy; Devaluation; Exchange Rate; Monetary Policy; Quantitative Easing; Inflation Targeting; Capital Flows; Central Banking; Currency Exchange Rate; Competitive Strategy; Emerging Markets; Policy; Trade; Conflict and Resolution; Banking Industry; Public Administration Industry; Moscow

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2024
Working Paper

The Value of AI Innovations

By: Wilbur Xinyuan Chen, Terrence Tianshuo Shi and Suraj Srinivasan

We study the value of AI innovations as it diffuses across general and application sectors, using the United States Patent and Trademark Office’s (USPTO) AI patent dataset. Investors value these innovations more than others, as AI patents exhibit a 9% value premium,... View Details

Keywords: AI and Machine Learning; Valuation; Technological Innovation; Open Source Distribution; Patents; Policy; Knowledge Sharing; Technology Industry

2013
Working Paper

Digital Dark Matter and the Economics of Apache

By: Shane Greenstein and Frank Nagle

Researchers have long hypothesized that spillovers from government, university, and private company R&D contribute to economic growth, but these contributions may be difficult to measure when they take a non-pecuniary form. The growth of networking devices and the... View Details

Keywords: Measurement and Metrics; Internet and the Web; Performance Productivity; Applications and Software; Economic Growth; Research and Development

Greater job mobility among engineers and scientists has caused the extended social networks of inventors to become increasingly connected. Firms that operate within small worlds such as in Silicon Valley long ago learned to manage invention in an... View Details

Research Summary

The Global Networks of Multinational Firms (with Maggie Chen)

By: Laura Alfaro

In this paper we characterize the topology of global multinational networks and examine the macro and micro patterns of multinational activity. We construct indices of network density at both pairwise industry and establishment level and measure agglomeration in a... View Details

2024
Working Paper

The Wandering Scholars: Understanding the Heterogeneity of University Commercialization

By: Josh Lerner, Henry Manley, Carolyn Stein and Heidi Williams

University-based scientific research has long been argued to be a central source of commercial innovation and economic growth. Yet at the same time, there have been long-held concerns that many university-based discoveries never realize their potential social... View Details

Keywords: Research; Higher Education; Business Startups; Innovation and Invention

2023
Working Paper

Local Shocks and Internal Migration: The Disparate Effects of Robots and Chinese Imports in the U.S.

By: Marius Faber, Andres Sarto and Marco Tabellini

Do local labor markets adjust to economic shocks through migration? In this paper, we study this question by focusing on two of the most important shocks that hit U.S. manufacturing since the 1990s: Chinese import competition and the introduction of industrial robots.... View Details

Keywords: Migration; Employment; Information Technology; Trade; System Shocks; United States

16 Jul 2012
Working Paper Summaries

Selection, Reallocation, and Spillover: Identifying the Sources of Gains from Multinational Production

Keywords: by Laura Alfaro & Maggie X. Chen

The Dynamic Advertising Effect of Collegiate Athletics

I measure the spillover effect of intercollegiate athletics on the quantity and quality of applicants to institutions of higher education in the United States, popularly known as the "Flutie Effect." I treat athletic success as a stock of goodwill that decays over... View Details

May 2021
Article

Private and Social Returns to R&D: Drug Development and Demographics

By: Efraim Benmelech, Janice Eberly, Dimitris Papanikolaou and Joshua Krieger

Investment in intangible capital such as R&D has increased dramatically since the 1990s. However, productivity growth remains sluggish in recent years. One potential reason is that a significant share of the increase in intangible investment is geared toward consumer... View Details

Keywords: Drug Development; Research and Development; Investment Return; Demographics; Pharmaceutical Industry

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Aliya Korganbekova is an assistant professor in the Accounting and Management Unit. She teaches the Financial Reporting and Control course in the MBA required curriculum.

Professor Korganbekova's research focuses on... View Details

Article

Corruption and Firms

By: Emanuele Colonnelli and Mounu Prem

We estimate the causal real economic effects of a randomized anti-corruption crackdown on local governments in Brazil using rich micro-data on corruption and firms. After anti-corruption audits, municipalities experience an increase in the number of firms concentrated... View Details

Keywords: Crime and Corruption; Economy; Business and Government Relations; Policy; Brazil

2021
Working Paper

Proxy Advisory Firms and Corporate Shareholder Engagement

By: Aiyesha Dey, Joshua White and Austin Starkweather

We examine the influence of proxy advisors on firms’ shareholder engagement behavior. Our analyses exploit a quasi-natural experiment using Say-On-Pay voting outcomes near a threshold that triggers a review of engagement activities by Institutional Shareholder Services... View Details

Keywords: Proxy Advisors; ISS; Shareholder Engagement; Disclosure; Business and Shareholder Relations; Executive Compensation; Corporate Disclosure

SSRN

Article

No Taxation Without Information: Deterrence and Self-Enforcement in the Value Added Tax

By: Dina Pomeranz

Claims that the VAT facilitates tax enforcement by generating paper trails on transactions between firms contributed to widespread VAT adoption worldwide, but there is surprisingly little evidence. This paper analyzes the role of third-party information for VAT... View Details

Keywords: Taxation; Product Development; Chile

February 2008 (Revised December 2023)
Case

Digital Music: From MP3 to Streaming

By: Willy Shih

The emergence of the MP3 file-based music format not only disrupted the market for portable audio players, it also impacted the business models of major record labels. Modularity, and the commoditization spillover enabled by modularity in the personal computer... View Details

Keywords: Recording; Digital Devices; Digital Media; Digital Music; Digital; Digital Economics; Consumer Electronics; Customer Value and Value Chain; Disruptive Innovation; Technological Innovation; Information Technology; Music Industry; Technology Industry; Electronics Industry; United States