Centre for Economic Performance

Displaying 1-40 of 99 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

    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 // 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 // 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 // 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 // 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

    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 // 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

    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 // Jul 2009

    Theory Of Values

    Economists have a well-developed theory of value but the theory of why people hold the values they do is rudimentary at best. In spite of the fact that it is common to argue that values are important, most work on values is normative and the positive theory of values is...

    Provided By Centre for Economic Performance

  • White Papers // Jul 2009

    Trade, Wages And Productivity

    The authors develop a new general equilibrium model of monopolistic competition with heterogeneous firms, variable demand elasticity and multiple asymmetric regions, in which trade integration induces wage and productivity changes. Using Canada-US interregional trade data, they structurally estimate a theory-based gravity equation system featuring endogenous wages and productivity. Given the...

    Provided By Centre for Economic Performance

  • White Papers // Jul 2009

    Institutions And The Management Of Human Resources: Incentive Pay Systems In France And Great Britain

    Using data from large-scale establishment surveys in Britain and France, the authors show that incentive pay for non-managers is more widespread in France than in Britain. They explain this finding in terms of the 'Beneficial constraint' arising from stronger employment protection in France, which provides an impulse to develop incentive...

    Provided By Centre for Economic Performance

  • White Papers // Jul 2009

    Life Satisfaction And Relative Income: Perceptions And Evidence

    Using a unique dataset the authors study both the actual and self-perceived relationship between subjective well-being and income comparisons against a wide range of potential comparison groups, enabling them to investigate a broader range of questions than in previous studies. In questions inserted into a 2008 module of the German-Socio...

    Provided By Centre for Economic Performance

  • White Papers // Jun 2009

    Unemployment Insurance And Cultural Transmission: Theory And Application To European Unemployment

    This paper emphasizes the two-way causality between the provision of unemployment insurance and the cultural transmission of work ethic. Values affect the size of the moral-hazard problem and, hence, the policy to be implemented. Conversely, when parents rationally choose how much effort to exert to raise their children to work...

    Provided By Centre for Economic Performance

  • White Papers // Jun 2009

    Trading Partners And Trading Volumes: Implementing The Helpman-Melitz-Rubinstein Model Empirically

    Helpman, Melitz, and Rubinstein (2008) - HMR - present a rich theoretical model to study the determinants of bilateral trade flows across countries. The model is then empirically implemented through a two-stage estimation procedure. This paper seeks to clarify some econometric aspects of the estimation approach used by HMR and...

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  • White Papers // May 2009

    Further Simulation Evidence On The Performance Of The Poisson Pseudo-maximum Likelihood Estimator

    The authors extend the simulation results given in Santos-Silva and Tenreyro (2006, 'The Log of Gravity', The Review of Economics and Statistics, 88, pp.641-658) by considering data generated as a finite mixture of gamma variates. Data generated in this way can naturally have a large proportion of zeros and is...

    Provided By Centre for Economic Performance

  • White Papers // May 2009

    On The Existence Of The Maximum Likelihood Estimates For Poisson Regression

    The authors note that the existence of the maximum likelihood estimates for Poisson regression depends on the data configuration. Because standard software does not check for this problem, the practitioner may be surprised to find that in some applications estimation of the Poisson regression is unusually difficult or even impossible....

    Provided By Centre for Economic Performance

  • White Papers // May 2009

    The ASEAN Free Trade Agreement: Impact On Trade Flows And External Trade Barriers

    Using detailed data on trade and tariffs from 1992-2007, the authors examine how the ASEAN Free Trade Agreement has affected trade with non-members and external tariffs facing non-members. First, they examine the effect of preferential and external tariff reduction on import growth from ASEAN insiders and outsiders across HS 6-digit...

    Provided By Centre for Economic Performance

  • White Papers // May 2009

    Risk Taking And Performance In Multistage Tournaments: Evidence From Weightlifting Competitions

    The authors analyze the impact of interim ranking on the risk taking and performance behaviour of professional athletes participating in international weightlifting competitions. Weightlifting competitions are multistage tournaments with the unique characteristic that the athletes must announce in advance the amount they intend to lift at each stage, thus allowing...

    Provided By Centre for Economic Performance

  • White Papers // Apr 2009

    The Empirics Of New Economic Geography

    Although a rich and extensive body of theoretical research on new economic geography has emerged, empirical research remains comparatively less well developed. This paper reviews the existing empirical literature on the predictions of new economic geography models for the distribution of income and production across space. The discussion highlights connections...

    Provided By Centre for Economic Performance

  • White Papers // Apr 2009

    Employee Voice And Private Sector Workplace Outcomes In Britain, 1980-2004

    Non-union direct voice has replaced union representative voice as the primary avenue for employee voice in the British private sector. This paper provides a framework for examining the relationship between employee voice and workplace outcomes that explains this development. As exit-voice theory predicts, voice is associated with lower voluntary turnover,...

    Provided By Centre for Economic Performance

  • White Papers // Apr 2009

    Monetary Policy Under Alterative Asset Market Structures: The Case Of A Small Open Economy

    Can the structure of asset markets change the way monetary policy should be conducted? Following a linear-quadratic approach, the present paper addresses this question in a New Keynesian small open economy framework. The authors' results reveal that the configuration of asset markets significantly affects optimal monetary policy and the performance...

    Provided By Centre for Economic Performance

  • White Papers // Apr 2009

    Hot And Cold Seasons In The Housing Market

    Every year during the second and third quarters (the "Hot season") housing markets in the UK and the US experience systematic above-trend increases in both prices and transactions. During the fourth and first quarters (the "Cold season"), house prices and transactions fall below trend. The authors propose a search-and-matching framework...

    Provided By Centre for Economic Performance

  • White Papers // Apr 2009

    Unions And Workplace Performance In Britain And France

    Using nationally representative workplace surveys the authors examine the relationship between unionization and workplace financial performance in Britain and France. They find that union bargaining is detrimental to workplace performance in Britain and that this effect is larger when unionization is endogenized. In France, union bargaining is associated with poorer...

    Provided By Centre for Economic Performance

  • White Papers // Apr 2009

    The Value Of Rude Health: Employees Well Being, Absence And Workplace Performance

    This paper brings new evidence on the relationship between employees' well being, sickness absence and four dimensions of workplace performance i.e. productivity, efficiency, quality of service and profitability. It uses a new panel dataset with monthly observations over two years for 48 local units of a large multi-site organisation in...

    Provided By Centre for Economic Performance

  • White Papers // Mar 2009

    The Impacts Of The Climate Change Levy On Business: Evidence From Microdata

    The authors estimate the impacts of an energy tax - the Climate Change Levy (CCL) - on the manufacturing sector using panel data from the UK production census. The identification strategy builds on the comparison of trends in outcomes between plants subject to the CCL and plants that were granted...

    Provided By Centre for Economic Performance

  • White Papers // Mar 2009

    Convergence Of Firm-level Productivity, Globalisation, Information Technology And Competition: Evidence From France

    Studies of firm-level data have shown that there is a huge dispersion of productivity across firms even when industries are narrowly defined. So there is a significant opportunity for the least productive firms to catch up to the most productive. The formers' convergence could therefore constitute an important part of...

    Provided By Centre for Economic Performance

  • White Papers // May 2009

    Accounting For Research And Productivity Growth Across Industries

    What factors underlie industry differences in research intensity and productivity growth? The authors develop a multi-sector endogenous growth model allowing for industry specific parameters in the production functions for output and knowledge, and in consumer preferences. They find that long run industry differences in both productivity growth and R&D intensity...

    Provided By Centre for Economic Performance

  • White Papers // Feb 2009

    The Macroeconomic Role Of Unemployment Compensation

    The standard motivation for unemployment compensation is consumption smoothing and most papers in the literature have analyzed trade-offs involving consumption smoothing and moral hazard. This paper shows how such policy can increase output by enhancing the assignment of workers to jobs in the face of firm productivity heterogeneity and skill-biased...

    Provided By Centre for Economic Performance

  • White Papers // Jan 2009

    International Trade Integration: A Disaggregated Approach

    This paper investigates the sources and size of trade barriers at the industry level. The authors derive a micro-founded measure of industry-specific bilateral trade integration that has an in-built control for time-varying multilateral resistance. This trade integration measure is consistent with a broad range of recent trade models including the...

    Provided By Centre for Economic Performance

  • White Papers // Jan 2009

    On The International Dimension Of Fiscal Policy

    This paper analyses the international dimension of fiscal policy using a small open economy framework in which the government finances its spending by levying distortionary taxation and issuing non-state-contingent debt. The main finding of the paper is that, once the open economy aspect of the policy problem is considered, it...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2008

    Trade, Technology Adoption And Wage Inequalities: Theory And Evidence

    This paper develops a model of trade that features heterogeneous firms, technology choice and different types of skilled labor in a general equilibrium framework. Its main contribution is to explain the impact of trade integration on technology adoption and wage inequalities. It also provides empirical evidence to support the model's...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2008

    Service Traders In The UK

    The authors provide a novel set of stylized facts on firms engaging in international trade in services, using unique firm-level data on services exports and imports in the United Kingdom in 2000- 2005. Less than 10% of firms trade in services but they can be found in all sectors of...

    Provided By Centre for Economic Performance

  • White Papers // Dec 2008

    Protection And International Sourcing

    The authors study the impact of import protection on relationship-specific investments, organizational choice and welfare. They show that a tariff on intermediate inputs can improve social welfare through mitigating hold-up problems. It does so if it discriminates in favor of the investing party, thereby improving its bargaining position. On the...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2008

    Central Banks Two-way Communication With The Public And Inflation Dynamics

    Using a model of island economy where financial markets aggregate dispersed information of the public, the authors analyze how two-way communication between the central bank and the public affects inflation dynamics. When inflation target is observable and credible to the public, markets provide the bank with information about the aggregate...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2008

    Understanding The Gender Pay Gap: Whats Competition Got To Do With It?

    A number of papers have recently argued that men and women have different attitudes and behavioural responses to competition. Laboratory experiments suggest that these gender differences are very large but it is important to be able to map these findings into real world differences. In this paper, the authors use...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2008

    Does Family Control Affect Trade Performance? Evidence For Italian Firms

    This paper examines whether the export decision of firms is affected by their ownership structure, specifically it looks at whether family control is an obstacle to entering foreign markets. The underlying assumption is that family firms are risk averse. Risk aversion may be an obstacle to entering foreign markets, as...

    Provided By Centre for Economic Performance

  • White Papers // Nov 2008

    Why Capital Does Not Migrate To The South: A New Economic Geography Perspective

    This paper explains why capital does not flow from the North to the South - the Lucas Paradox - with a New Economic Geography model that incorporates mobile capital, immobile labour, and productively heterogeneous firms. In contrast to neoclassical theories, the results show that even a small difference in the...

    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

    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 // 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