Centre for Economic Performance

Displaying 1-40 of 78 results

  • White Papers // Jun 2011

    Gender, Productivity And The Nature Of Work And Pay: Evidence From The Late Nineteenth-century Tobacco Industry

    Women have, on average, been less well-paid than men throughout history. Prior to 1900, most economic historians see the gender wage gap as a reflection of men's greater strength and correspondingly higher productivity. This paper investigates the gender wage gap in cigar making around 1900. Strength was rarely an issue,...

    Provided By Centre for Economic Performance

  • White Papers // May 2011

    The Impact Of Chernobyl On Health And Labour Market Performance

    Using longitudinal data from Ukraine the authors examine the extent of any long-lasting effects of radiation exposure from the Chernobyl disaster on the health and labour market performance of the adult workforce. The variation in the local area level of radiation fallout from the Chernobyl accident is considered as a...

    Provided By Centre for Economic Performance

  • White Papers // May 2011

    Money And Happiness: Evidence From The Industry Wage Structure

    There is a well-established positive correlation between life-satisfaction measures and income in individual level cross-sectional data. This paper attempts to provide some evidence on whether this correlation reflects causality running from money to happiness. The author uses industry wage differentials as instruments for income. This is based on the idea...

    Provided By Centre for Economic Performance

  • White Papers // May 2011

    Spinning Welfare: The Gains From Process Innovation In Cotton And Car Production

    Economists and economic historians want to know how much better life is today than in the past. Fifty years ago economic historians found surprisingly small gains from 19th century US railroads, while more recently economists have found relatively large gains from electricity, computers and cell phones. In each case the...

    Provided By Centre for Economic Performance

  • White Papers // Mar 2011

    Priors And Desires: A Model Of Payoff-dependent Beliefs

    Whatever a person wants to be true affects what she believes to be true, and consequently the decisions she makes. This paper introduces an axiomatic model of decision making that allows for this possibility, and uses a number of simplifying assumptions to derive a generally applicable formal representation. In the...

    Provided By Centre for Economic Performance

  • White Papers // Feb 2011

    Does High Involvement Management Lead To Higher Pay?

    Using nationally representative survey data for Finnish employees linked to register data on their wages and work histories, the authors find wage effects of High Involvement Management (HIM) practices are generally positive and significant. However, employees with better wage and work histories are more likely to enter HIM jobs. The...

    Provided By Centre for Economic Performance

  • White Papers // Feb 2011

    Seesaw In The Air: Interconnection Regulation And The Structure Of Mobile Tariffs

    Interconnection rates are a key variable in telecommunications markets. Every call that is placed must be terminated by the network of the receiving party, thus the termination end has the characteristic of an economic bottleneck and is subject to regulation in many countries. This paper examines the impact of regulatory...

    Provided By Centre for Economic Performance

  • White Papers // Feb 2011

    Managers~ Mobility, Trade Status And Wages

    This paper investigates whether the arrival of managers with export experience, i.e. experience acquired through participation in the export activity of previous employers, is related to firms' international trade status and to what extent this relationship is of a causal nature. The authors construct a worker-firm matched panel dataset which...

    Provided By Centre for Economic Performance

  • White Papers // Jan 2011

    Immigration And The Occupational Choice Of Natives: A Factor Proportions Approach

    This paper evaluates the impact of immigration on the labor market outcomes of natives in France over the period 1962-1999. Combining large (up to 25%) extracts from six censuses and data from Labor Force Surveys, the authors exploit the variation in the immigrant share across education/experience cells and over time...

    Provided By Centre for Economic Performance

  • White Papers // Jan 2011

    Does Management Matter? Evidence From India

    A long-standing question in social science is to what extent differences in management cause differences in firm performance. To investigate this the authors ran a management field experiment on large Indian textile firms. They provided free consulting on modern management practices to a randomly chosen set of treatment plants and...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    The Evolution Of The Modern Worker: Attitudes To Work

    This paper examines how employees' experiences of, and attitudes towards, work have changed over the last quarter of a century. It assesses the extent to which any developments relate to the economic cycle and to trends in the composition of the British workforce. Many of the findings are broadly positive,...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    The Spatial Organization Of Multinational Firms

    Using six years of firm-level data covering 224 regions of the enlarged European Union, the authors evaluate the importance to a firm of locating its activities (production, headquarters, R&D, logistics and sales) close together. They find that, after controlling for regional characteristics, being closely located to a previous investment positively...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Trade And Labor Market Outcomes

    This paper reviews a new framework for analyzing the interrelationship between inequality, unemployment, labor market frictions, and foreign trade. This framework emphasizes firm heterogeneity and search and matching frictions in labor markets. It implies that the opening of trade may raise inequality and unemployment, but always raises welfare. Unilateral reductions...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Anatomy Of A Paradox: Management Practices, Organisational Structure And Energy Efficiency

    This paper presents new evidence on managerial and organizational factors that explain firm level energy efficiency and TFP. The authors interviewed managers of 190 randomly selected manufacturing plants in the UK and matched their responses with official business microdata. They find that 'Climate friendly' management practices are associated with lower...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Import Competition From And Outsourcing To China: A Curse Or Blessing For Firms?

    The authors use Belgian manufacturing firm-level data over the period 1996- 2007 to analyze the impact of imports from different origins on firm growth, exit, and skill upgrading. For this purpose they use both industry-level and firm-level imports by country of origin and distinguish between firm-level outsourcing of final versus...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Individualisation And Growing Diversity Of Employment Relationships

    At a time when the economic recession is more severe, and trade unions are weaker, than at any time since the War, it would be unproductive to speculate about the extent to which these changes have been imposed, acquiesced, or agreed by the workers concerned. Instead the authors focus on...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Does Competition Raise Productivity Through Improving Management Quality?

    A classic question in industrial organization is whether competition raises productivity and if so, through what mechanism? The author discusses recent empirical evidence from both large-scale databases and specific industries which suggests that tougher competition does indeed raise productivity and one of the main mechanisms is through improving management practices....

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Communal Responsibility And The Coexistence Of Money And Credit Under Anonymous Matching

    Communal responsibility, a medieval institution studied by Greif (2006), supported the use of credit among European merchants in the absence of modern enforcement technologies. This paper shows how this mechanism helps to overcome enforcement problems in anonymous buyer/seller transactions. In a village economy version of the Lagos and Wright (2005)...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Financial Crises And Macro-prudential Policies

    Stochastic general equilibrium models of small open economies with occasionally binding financial frictions are capable of mimicking both the business cycles and the crisis events associated with the sudden stop in access to credit markets (Mendoza, 2010). In this paper, the authors study the inefficiencies associated with borrowing decisions in...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2010

    Long Term Implications Of The ICT Revolution: Applying The Lessons Of Growth Theory And Growth Accounting

    How big a boost to long run growth can countries expect from the ICT revolution? The author uses the results of growth accounting and the insights from a two-sector growth model to answer this question. The use of a two-sector rather than a one-sector model is required because of the...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2010

    Explaining Job Polarization In Europe: The Roles Of Technology, Globalization And Institutions

    This paper shows the employment structure of 16 European countries has been polarizing in recent years with the employment shares of managers, professionals and low-paid personal services workers increasing at the expense of the employment shares of middling manufacturing and routine office workers. To explain this job polarization, the paper...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2010

    Do Matching Frictions Explain Unemployment? Not In Bad Times

    This paper models unemployment as the result of matching frictions and job rationing. Job rationing is a shortage of jobs arising naturally in an economic equilibrium from the combination of some wage rigidity and diminishing marginal returns to labor. During recessions, job rationing is acute, driving the rise in unemployment,...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2010

    Bank Bailouts, International Linkages And Cooperation

    Financial institutions are increasingly linked internationally. As a result, financial crisis and government intervention have stronger effects beyond borders. The authors provide a model of international contagion allowing for bank bailouts. While a social planner trades off tax distortions, liquidation losses and intra- and inter-country income inequality, in the non-cooperative...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2010

    Is The WTO Article XXIV Bad?

    This paper shows that the WTO's Article XXIV increases the likelihood of free trade, but may worsen world welfare when free trade is not reached and Customs Unions (CUs) form. The authors consider a model of many countries. Article XXIV prevents a CU from raising its common external tariff, which...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Revisiting Overborrowing And Its Policy Implications

    This paper analyzes quantitatively the extent to which there is overborrowing (i.e., inefficient borrowing) in a business cycle model for emerging market economies with production and an occasionally binding credit constraint. The main finding of the analysis is that overborrowing is not a robust feature of this class of model...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Do Salaries Improve Worker Performance?

    The authors establish the effects of salaries on worker performance by exploiting a natural experiment in which some workers in a particular occupation (football referees) switch from short-term contracts to salaried contracts. Worker performance improves among those who move onto salaried contracts relative to those who do not. The finding...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    How Big (Small?) Are Fiscal Multipliers?

    The authors contribute to the intense debate on the real effects of fiscal stimuli by showing that the impact of government expenditure shocks depends crucially on key country characteristics, such as the level of development, exchange rate regime, openness to trade, and public indebtedness. Based on a novel quarterly dataset...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Adjusting To Capital Account Liberalization

    The authors study theoretically how the adjustment to liberalization of international financial transaction depends upon the degree of domestic financial development. Using a model with domestic and international borrowing constraints, they show that, when the domestic financial system is underdeveloped, capital account liberalization is not necessarily beneficial because TFP stagnates...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    A Task-based Approach To Organization: Knowledge, Communication And Structure

    The authors bridge a gap between organizational economics and strategy research by developing a task-based approach to analyze organizational knowledge, process and structure, and deriving testable implications for the relation between production and organizational structure. They argue that organization emerges to integrate disperse knowledge and to coordinate talent in production...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Political Competition, Policy And Growth: Theory And Evidence From The United States

    This paper develops a simple model to analyze how a lack of political competition may lead to policies that hinder economic growth. The authors test the predictions of the model on panel data for the US states. In these data, they find robust evidence that lack of political competition in...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Employment, Inequality And The UK National Minimum Wage Over The Medium-term

    This paper assesses the impact of the National Minimum Wage (NMW) on employment and inequality in the UK over the decade since its introduction in 1999. Identification is facilitated by using variation in the bite of the NMW across local labour markets and the different sized year on year up...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Individual Voice In Employment Relationships: A Comparison Under Different Collective Voice Regimes

    This paper examines the relationship between individual and collective employee voice, and management-led voice (appraisal), under contrasted collective voice regimes. In the first, collective workplace voice depends on voluntary recognition by the employer, and in the second, it is based on statutory rights. It is argued that in the first,...

    Provided By Centre for Economic Performance

  • White Papers // Sep 2010

    There Will Be Money

    A common belief among monetary theorists is that monetary equilibria are tenuous due to the intrinsic uselessness of fiat money (Wallace (1978)). In this paper, the authors argue that the tenuousness of monetary equilibria vanishes as soon as one introduces a small perturbation in an otherwise standard random matching model...

    Provided By Centre for Economic Performance

  • White Papers // Sep 2010

    The Effect Of Market Entry On Innovation: Evidence From UK University Incubators

    This paper investigates the effect of market entry of new firms on incumbent firms' innovative activity measured as patent applications. The basic assumption is that the effect of entry varies by geographical distance between entrants and incumbents due to the presence of localized unobserved spillovers. In order to avoid endogeneity...

    Provided By Centre for Economic Performance

  • White Papers // Sep 2010

    Trade As An Engine Of Creative Destruction: Mexican Experience With Chinese Competition

    This paper exploits the surge in Chinese exports from 1994 to 2004 as a natural experiment to evaluate the effects of a unilateral low wage trade and competition shock to producers in Mexico. The authors find that this shock causes selection at both firm and product levels as its impact...

    Provided By Centre for Economic Performance

  • White Papers // Sep 2010

    The End Of National Models In Employment Relations?

    The erosion of a number of national systems of employment relations, and the evidence from large scale workplace surveys has brought attention to the considerable diversity of employment systems within major economies. This paper applies the theory of evolutionary games to explain the diffusion of different employment systems within national...

    Provided By Centre for Economic Performance

  • White Papers // Sep 2010

    Productivity Spreads, Market Power Spreads And Trade

    Much of recent Trade theory focuses on heterogeneity of firms and the differential impact trade policy might have on firms with different levels of productivity. A common problem is that most firm level dataset do not contain information on output prices of firms which makes it difficult to distinguish between...

    Provided By Centre for Economic Performance

  • White Papers // Aug 2010

    How To Measure Living Standards And Productivity

    This paper sets out a general algorithm for calculating true cost-of-living indices or true producer price indices when demand is not homothetic, i.e. when not all expenditure elasticities are equal to one. In principle, economic theory tells us how we should calculate a true cost-of-living index or Kon?s price index:...

    Provided By Centre for Economic Performance

  • White Papers // Aug 2010

    The Impact Of The Diffusion Of A Financial Innovation On Company Performance: An Analysis Of Swift Adoption

    How does a major financial network innovation influence firm performance? Despite much speculation the authors have little hard quantitative evidence about the impact of technology diffusion in financial services. In this paper, they use the entire adoption history for SWIFT (the Society for Worldwide Interbank Financial Telecommunication - standards provider...

    Provided By Centre for Economic Performance

  • White Papers // Aug 2010

    Spillovers In Space: Does Geography Matter?

    The authors simultaneously assess the contributions to productivity of three sources of research and development spillovers: geographic, technology and product - market proximity. To do this, they construct a new measure of geographic proximity that is based on the distribution of a firm's inventor locations rather than its headquarters, and...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    The Evolution Of The Modern Worker: Attitudes To Work

    This paper examines how employees' experiences of, and attitudes towards, work have changed over the last quarter of a century. It assesses the extent to which any developments relate to the economic cycle and to trends in the composition of the British workforce. Many of the findings are broadly positive,...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    The Spatial Organization Of Multinational Firms

    Using six years of firm-level data covering 224 regions of the enlarged European Union, the authors evaluate the importance to a firm of locating its activities (production, headquarters, R&D, logistics and sales) close together. They find that, after controlling for regional characteristics, being closely located to a previous investment positively...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Trade And Labor Market Outcomes

    This paper reviews a new framework for analyzing the interrelationship between inequality, unemployment, labor market frictions, and foreign trade. This framework emphasizes firm heterogeneity and search and matching frictions in labor markets. It implies that the opening of trade may raise inequality and unemployment, but always raises welfare. Unilateral reductions...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2010

    Long Term Implications Of The ICT Revolution: Applying The Lessons Of Growth Theory And Growth Accounting

    How big a boost to long run growth can countries expect from the ICT revolution? The author uses the results of growth accounting and the insights from a two-sector growth model to answer this question. The use of a two-sector rather than a one-sector model is required because of the...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2010

    Explaining Job Polarization In Europe: The Roles Of Technology, Globalization And Institutions

    This paper shows the employment structure of 16 European countries has been polarizing in recent years with the employment shares of managers, professionals and low-paid personal services workers increasing at the expense of the employment shares of middling manufacturing and routine office workers. To explain this job polarization, the paper...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2010

    Do Matching Frictions Explain Unemployment? Not In Bad Times

    This paper models unemployment as the result of matching frictions and job rationing. Job rationing is a shortage of jobs arising naturally in an economic equilibrium from the combination of some wage rigidity and diminishing marginal returns to labor. During recessions, job rationing is acute, driving the rise in unemployment,...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2010

    Bank Bailouts, International Linkages And Cooperation

    Financial institutions are increasingly linked internationally. As a result, financial crisis and government intervention have stronger effects beyond borders. The authors provide a model of international contagion allowing for bank bailouts. While a social planner trades off tax distortions, liquidation losses and intra- and inter-country income inequality, in the non-cooperative...

    Provided By Centre for Economic Performance

  • White Papers // May 2011

    Money And Happiness: Evidence From The Industry Wage Structure

    There is a well-established positive correlation between life-satisfaction measures and income in individual level cross-sectional data. This paper attempts to provide some evidence on whether this correlation reflects causality running from money to happiness. The author uses industry wage differentials as instruments for income. This is based on the idea...

    Provided By Centre for Economic Performance

  • White Papers // May 2011

    Spinning Welfare: The Gains From Process Innovation In Cotton And Car Production

    Economists and economic historians want to know how much better life is today than in the past. Fifty years ago economic historians found surprisingly small gains from 19th century US railroads, while more recently economists have found relatively large gains from electricity, computers and cell phones. In each case the...

    Provided By Centre for Economic Performance

  • White Papers // Mar 2011

    Priors And Desires: A Model Of Payoff-dependent Beliefs

    Whatever a person wants to be true affects what she believes to be true, and consequently the decisions she makes. This paper introduces an axiomatic model of decision making that allows for this possibility, and uses a number of simplifying assumptions to derive a generally applicable formal representation. In the...

    Provided By Centre for Economic Performance

  • White Papers // Feb 2011

    Does High Involvement Management Lead To Higher Pay?

    Using nationally representative survey data for Finnish employees linked to register data on their wages and work histories, the authors find wage effects of High Involvement Management (HIM) practices are generally positive and significant. However, employees with better wage and work histories are more likely to enter HIM jobs. The...

    Provided By Centre for Economic Performance

  • White Papers // Feb 2011

    Seesaw In The Air: Interconnection Regulation And The Structure Of Mobile Tariffs

    Interconnection rates are a key variable in telecommunications markets. Every call that is placed must be terminated by the network of the receiving party, thus the termination end has the characteristic of an economic bottleneck and is subject to regulation in many countries. This paper examines the impact of regulatory...

    Provided By Centre for Economic Performance

  • White Papers // Feb 2011

    Managers~ Mobility, Trade Status And Wages

    This paper investigates whether the arrival of managers with export experience, i.e. experience acquired through participation in the export activity of previous employers, is related to firms' international trade status and to what extent this relationship is of a causal nature. The authors construct a worker-firm matched panel dataset which...

    Provided By Centre for Economic Performance

  • White Papers // Jan 2011

    Immigration And The Occupational Choice Of Natives: A Factor Proportions Approach

    This paper evaluates the impact of immigration on the labor market outcomes of natives in France over the period 1962-1999. Combining large (up to 25%) extracts from six censuses and data from Labor Force Surveys, the authors exploit the variation in the immigrant share across education/experience cells and over time...

    Provided By Centre for Economic Performance

  • White Papers // Jan 2011

    Does Management Matter? Evidence From India

    A long-standing question in social science is to what extent differences in management cause differences in firm performance. To investigate this the authors ran a management field experiment on large Indian textile firms. They provided free consulting on modern management practices to a randomly chosen set of treatment plants and...

    Provided By Centre for Economic Performance

  • White Papers // Aug 2010

    The Impact Of The Diffusion Of A Financial Innovation On Company Performance: An Analysis Of Swift Adoption

    How does a major financial network innovation influence firm performance? Despite much speculation the authors have little hard quantitative evidence about the impact of technology diffusion in financial services. In this paper, they use the entire adoption history for SWIFT (the Society for Worldwide Interbank Financial Telecommunication - standards provider...

    Provided By Centre for Economic Performance

  • White Papers // Aug 2010

    Spillovers In Space: Does Geography Matter?

    The authors simultaneously assess the contributions to productivity of three sources of research and development spillovers: geographic, technology and product - market proximity. To do this, they construct a new measure of geographic proximity that is based on the distribution of a firm's inventor locations rather than its headquarters, and...

    Provided By Centre for Economic Performance

  • White Papers // Jul 2010

    Towards A New Architecture For Financial Stability: Seven Principles

    In this paper, the authors use insights from organizational economics and financial regulation to study the optimal architecture of supervision. They suggest that the new architecture should revolve around the following principles: banking, securities and insurance supervision should be further integrated; macro prudential supervisory function must be in the hands...

    Provided By Centre for Economic Performance

  • White Papers // Jun 2010

    The Growth Of Extended ~Entry Tournaments~ And The Decline Of Institutionalised Occupational Labour Markets In Britain

    In recent years, British labour markets have been characterised by a decline of institutional regulation of entry routes into many occupations and internal labour markets. This paper examines this change by comparing occupational labour markets for selected occupations in which institutional regulation has remained largely intact with those in which...

    Provided By Centre for Economic Performance

  • White Papers // Jun 2011

    Gender, Productivity And The Nature Of Work And Pay: Evidence From The Late Nineteenth-century Tobacco Industry

    Women have, on average, been less well-paid than men throughout history. Prior to 1900, most economic historians see the gender wage gap as a reflection of men's greater strength and correspondingly higher productivity. This paper investigates the gender wage gap in cigar making around 1900. Strength was rarely an issue,...

    Provided By Centre for Economic Performance

  • White Papers // May 2011

    The Impact Of Chernobyl On Health And Labour Market Performance

    Using longitudinal data from Ukraine the authors examine the extent of any long-lasting effects of radiation exposure from the Chernobyl disaster on the health and labour market performance of the adult workforce. The variation in the local area level of radiation fallout from the Chernobyl accident is considered as a...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2010

    Is The WTO Article XXIV Bad?

    This paper shows that the WTO's Article XXIV increases the likelihood of free trade, but may worsen world welfare when free trade is not reached and Customs Unions (CUs) form. The authors consider a model of many countries. Article XXIV prevents a CU from raising its common external tariff, which...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Revisiting Overborrowing And Its Policy Implications

    This paper analyzes quantitatively the extent to which there is overborrowing (i.e., inefficient borrowing) in a business cycle model for emerging market economies with production and an occasionally binding credit constraint. The main finding of the analysis is that overborrowing is not a robust feature of this class of model...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Do Salaries Improve Worker Performance?

    The authors establish the effects of salaries on worker performance by exploiting a natural experiment in which some workers in a particular occupation (football referees) switch from short-term contracts to salaried contracts. Worker performance improves among those who move onto salaried contracts relative to those who do not. The finding...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    How Big (Small?) Are Fiscal Multipliers?

    The authors contribute to the intense debate on the real effects of fiscal stimuli by showing that the impact of government expenditure shocks depends crucially on key country characteristics, such as the level of development, exchange rate regime, openness to trade, and public indebtedness. Based on a novel quarterly dataset...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Adjusting To Capital Account Liberalization

    The authors study theoretically how the adjustment to liberalization of international financial transaction depends upon the degree of domestic financial development. Using a model with domestic and international borrowing constraints, they show that, when the domestic financial system is underdeveloped, capital account liberalization is not necessarily beneficial because TFP stagnates...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    A Task-based Approach To Organization: Knowledge, Communication And Structure

    The authors bridge a gap between organizational economics and strategy research by developing a task-based approach to analyze organizational knowledge, process and structure, and deriving testable implications for the relation between production and organizational structure. They argue that organization emerges to integrate disperse knowledge and to coordinate talent in production...

    Provided By Centre for Economic Performance

  • White Papers // Aug 2010

    Do Higher Wages Come At A Price?

    Using linked employer-employee data for Britain, the authors find job satisfaction and job anxiety are negatively correlated but higher wages are associated with higher job satisfaction and higher job anxiety. However, they observe a positive association between higher wages and non-pecuniary job satisfaction, which disappears with the inclusion of the...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Anatomy Of A Paradox: Management Practices, Organisational Structure And Energy Efficiency

    This paper presents new evidence on managerial and organizational factors that explain firm level energy efficiency and TFP. The authors interviewed managers of 190 randomly selected manufacturing plants in the UK and matched their responses with official business microdata. They find that 'Climate friendly' management practices are associated with lower...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Import Competition From And Outsourcing To China: A Curse Or Blessing For Firms?

    The authors use Belgian manufacturing firm-level data over the period 1996- 2007 to analyze the impact of imports from different origins on firm growth, exit, and skill upgrading. For this purpose they use both industry-level and firm-level imports by country of origin and distinguish between firm-level outsourcing of final versus...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Individualisation And Growing Diversity Of Employment Relationships

    At a time when the economic recession is more severe, and trade unions are weaker, than at any time since the War, it would be unproductive to speculate about the extent to which these changes have been imposed, acquiesced, or agreed by the workers concerned. Instead the authors focus on...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Does Competition Raise Productivity Through Improving Management Quality?

    A classic question in industrial organization is whether competition raises productivity and if so, through what mechanism? The author discusses recent empirical evidence from both large-scale databases and specific industries which suggests that tougher competition does indeed raise productivity and one of the main mechanisms is through improving management practices....

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Communal Responsibility And The Coexistence Of Money And Credit Under Anonymous Matching

    Communal responsibility, a medieval institution studied by Greif (2006), supported the use of credit among European merchants in the absence of modern enforcement technologies. This paper shows how this mechanism helps to overcome enforcement problems in anonymous buyer/seller transactions. In a village economy version of the Lagos and Wright (2005)...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2010

    Financial Crises And Macro-prudential Policies

    Stochastic general equilibrium models of small open economies with occasionally binding financial frictions are capable of mimicking both the business cycles and the crisis events associated with the sudden stop in access to credit markets (Mendoza, 2010). In this paper, the authors study the inefficiencies associated with borrowing decisions in...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Political Competition, Policy And Growth: Theory And Evidence From The United States

    This paper develops a simple model to analyze how a lack of political competition may lead to policies that hinder economic growth. The authors test the predictions of the model on panel data for the US states. In these data, they find robust evidence that lack of political competition in...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Employment, Inequality And The UK National Minimum Wage Over The Medium-term

    This paper assesses the impact of the National Minimum Wage (NMW) on employment and inequality in the UK over the decade since its introduction in 1999. Identification is facilitated by using variation in the bite of the NMW across local labour markets and the different sized year on year up...

    Provided By Centre for Economic Performance

  • White Papers // Oct 2010

    Individual Voice In Employment Relationships: A Comparison Under Different Collective Voice Regimes

    This paper examines the relationship between individual and collective employee voice, and management-led voice (appraisal), under contrasted collective voice regimes. In the first, collective workplace voice depends on voluntary recognition by the employer, and in the second, it is based on statutory rights. It is argued that in the first,...

    Provided By Centre for Economic Performance

  • White Papers // Sep 2010

    There Will Be Money

    A common belief among monetary theorists is that monetary equilibria are tenuous due to the intrinsic uselessness of fiat money (Wallace (1978)). In this paper, the authors argue that the tenuousness of monetary equilibria vanishes as soon as one introduces a small perturbation in an otherwise standard random matching model...

    Provided By Centre for Economic Performance

  • White Papers // Sep 2010

    The Effect Of Market Entry On Innovation: Evidence From UK University Incubators

    This paper investigates the effect of market entry of new firms on incumbent firms' innovative activity measured as patent applications. The basic assumption is that the effect of entry varies by geographical distance between entrants and incumbents due to the presence of localized unobserved spillovers. In order to avoid endogeneity...

    Provided By Centre for Economic Performance

  • White Papers // Sep 2010

    Trade As An Engine Of Creative Destruction: Mexican Experience With Chinese Competition

    This paper exploits the surge in Chinese exports from 1994 to 2004 as a natural experiment to evaluate the effects of a unilateral low wage trade and competition shock to producers in Mexico. The authors find that this shock causes selection at both firm and product levels as its impact...

    Provided By Centre for Economic Performance