This paper studies firms' optimal response to a trade liberalization shock in terms of export and product innovation both theoretically and empirically. We find that trade liberalization, namely China's WTO accession, reduces trade cost and promotes export, which in turn incentivizes firms to innovate as the marginal benefit of innovation for exporting firms is higher than that for non-exporting firms. In addition, as a firm starts to innovate, it predicts to have a higher probability of moving to a better productivity state and can save the entry cost of innovation in the future, resulting in additional dynamic benefits. Such an innovation-promotion effect is an unintended consequence of trade liberalization.
Can we create binding agreements between nations? Recently, scholars have argued that blockchain technology enables us to do so. Given that this could greatly affect the anarchical world order implied by state sovereignty, this remarkable claim is investigated thoroughly. By focusing on the technical implementation of smart contracts between nations, this article finds that the potential to create binding agreements using blockchain technology is far more limited than recently suggested.
We develop a dynamic model of economic complexity that endogenously generates a transition between unconditional and conditional convergence. In this model, convergence turns conditional as the capability intensity of activities rises. We solve the model analytically, deriving closed-form solutions for the boundary separating unconditional from conditional convergence and show that this model also explains the path-dependent diversification process known as the principle of relatedness. This model provides an explanation for transitions between conditional and unconditional convergence and path-dependent diversification.
This article reviews the empirical evidence on the use of patent citations as a proxy for invention importance. It distinguishes between technical merit, private economic value, and social value, and surveys validation studies using expert ratings, market data, renewal records, and compensation reports. The findings confirm that while the count of citations is positively associated with various dimensions of value, it remains a noisy indicator -- correlated but far from definitive.
Does government transparency affect innovation? I evaluate the launch of a government database with detailed technical information on the universe of wireless-enabled products on the U.S. market (N 347 thousand). The results show the launch approximately doubled the use of new technologies in the following ten years, an indicator of follow-on innovation. The increase affected both products in the same and new product classes, suggesting novelty; waned over several years, potentially due to an increase in secrecy and patenting; and boosted foreign more than U.S. domestic competitors. These results highlight the importance of information for private sector innovation.
The third National Charter School Study (NCSS III) aimed to test whether charter school were effective and to highlight outcomes on academic progress. The authors reported that typical charter school students outperformed similar students in non-charter public schools by 6 days in mathematics and 16 days in reading. This "days of learning" metric used to claim relatively higher performance in charter schools than in comparable public schools. This logic of this metric is critiqued in this paper, and an alternative method of reporting outcomes is proposed.
Callum G. Jones, Aurelie Vanderlinden, Ola Rominiyi
et al.
Glioblastoma is an aggressive, incurable brain cancer with poor five-year survival rates of around 13% despite multimodal treatment with surgery, DNA-damaging chemoradiotherapy and the recent addition of Tumour Treating Fields (TTFields). As such, there is an urgent need to improve our current understanding of cellular responses to TTFields using more clinically and surgically relevant models, which reflect the profound spatial heterogeneity within glioblastoma, and leverage these biological insights to inform the rational design of more effective therapeutic strategies incorporating TTFields. We have recently reported the use of preclinical TTFields using the inovitroTM system within 2D glioma stem-like cell (GSC) models and demonstrated significant cytotoxicity enhancement when co-applied with a range of therapeutically approved and preclinical DNA damage response inhibitors (DDRi) and chemoradiotherapy. Here we report the development and optimisation of preclinical TTFields delivery within more clinically relevant 3D scaffold-based primary GSC models of spatial heterogeneity, and highlight some initial enhancement of TTFields potency with temozolomide and clinically approved PARP inhibitors (PARPi). These studies, therefore, represent an important platform for further preclinical assessment of TTFields-based therapeutic strategies within clinically relevant 3D GSC models, aimed towards accelerating clinical trial implementation and the ultimate goal of improving the persistently dire survival rates for these patients.
Antitrust authorities routinely rely on market concentration measures to assess the potential adverse effects of mergers on consumer welfare. Using a first-order approximation argument with logit and CES demand, I derive the relationship between the welfare effect of a merger on consumer surplus and the change in the Herfindahl-Hirschman Index (HHI). My results suggest that merger harm is correlated with the merger-induced change in HHI, and the proportionality coefficient depends on the price responsiveness parameter, market size, and the distribution of market shares within and across the merging firms. I present numerical validation of my formula along with an empirical illustration.
Giacomo De Giorgi, Enrico Moretti, Harrison Wheeler
We study the effect of localized housing price hikes on renters' mobility, consumption, and credit outcomes. Consistent with a spatial equilibrium model, we find that the consumption responses vary greatly for movers and stayers. While movers increase their consumption, purchase homes, and cars, stayers are relatively unaffected.
The Amazon Basin and the Latin America and Caribbean (LAC) region stands at a critical juncture, grappling with pressing environmental challenges while holding immense potential for transformative change through innovative solutions. This report illuminates the diverse landscape of social-ecological issues, technological advancements, community-led initiatives, and strategic actions that could help foster biosphere-based sustainability and resilience across the region.
This note observes that the Cobb-Douglas function is uniquely characterized by the property that, if the labour share of cost for a constant-returns-to-scale firm remains constant when the firm minimizes its cost for any given output level, then the firm's production function must be Cobb-Douglas.
In many non-cooperative settings, agents often possess useful information that provide an advantage over their opponent(s), but acting on such information too frequently can lead to detection. I develop a simple framework to analyze such a trade-off and characterize the optimal way in which to act on information.
Adam Smith developed a version of moral philosophy where better decisions are made by interrogating an impartial spectator within us. We discuss the possibility of using an external non-human-based substitute tool that would augment our internal mental processes and play the role of the impartial spectator. Such tool would have more knowledge about the world, be more impartial, and would provide a more encompassing perspective on moral assessment.
Pyrotinib is an irreversible pan-ErbB receptor tyrosine kinase inhibitor, designed for the therapy of HER2-positive breast cancers. Inhibition of the epidermal growth factor receptor (EGFR, HER family) efficiently and selectively suppresses the proliferation of human TSC2-deficient smooth muscle cells and reverses lung changes in LAM/TSC. Our pilot study indicated that pyrotinib dramatically restrained the vitality of TSC2-deficient cells compared to its limited impact on TSC2-expression cells. Pyrotinib induced G1-phase arrest and triggered apoptosis by blocking abnormally activated CD24 in TSC2-deficient cells. CD24 is not only an important immune checkpoint, but is also involved in the regulation of signaling pathways. Pyrotinib inhibited the nuclear import of pEGFR and restrained the pEGFR/pSTAT3 signals, which directly boosted the transcriptional expression of CD24 by binding to its promoter region. In reverse, CD24 enhanced pEGFR function by directly binding. Pyrotinib specifically targeted TSC2-deficient cells, inhibited tumor cell viability and induced apoptosis through EGFR-STAT3/CD24 Loop in vivo and in vitro. Thus, pyrotinib may be a promising new therapeutic drug for TSC treatment.
We provide a generalized revealed preference test for quasilinear preferences. The test applies to nonlinear budget sets and non-convex preferences as those found in taxation and nonlinear pricing contexts. We study the prevalence of quasilinear preferences in a laboratory real-effort task experiment with nonlinear wages. The experiment demonstrates the empirical relevance of our test. We find support for either convex (non-separable) preferences or quasilinear preferences but weak support for the hypothesis of both quasilinear and convex preferences.
The authors of the article analyze the policy of the Russian government in the field of family support, paying attention to legal programs at the federal and regional levels. The maternity capital program is considered separately, as well as measures aimed at supporting large families.
We extend the model of Parenti (2018) on large and small firms by introducing cost heterogeneity among small firms. We propose a novel necessary and sufficient condition for the existence of such a mixed market structure. Furthermore, in contrast to Parenti (2018), we show that in the presence of cost heterogeneity among small firms, trade liberalization may raise or reduce the mass of small firms in operation.
Labor displacement off-or nearshore is a performance improvement instrument that currently sparks a lot of interest in the service sector. This article proposes a model to understand the consequences of such a decision on management consulting firms. Its calibration on the market of consulting services for the German transportation industry highlights that, under realistic assumptions, labor displacement translates in price decrease by-0.5% on average per year and that for MC practices to remain competitive/profitable they have to at least increase the amount of work they off/nears shore by +0.7% a year.
We exploit variation in the timing of decriminalization of same-sex sexual intercourse across U.S. states to estimate the impact of these law changes on crime through difference-in-difference and event-study models. We provide the first evidence that sodomy law repeals led to a decline in the number of arrests for disorderly conduct, prostitution, and other sex offenses. Furthermore, we show that these repeals led to a reduction in arrests for drug and alcohol consumption.