the contingent effect of social capital on performance of professional athletes life cycle stages and changes in regulation as moderators motorboat racing is a sport organized as public gambling in japan as well as physical strength and driving technique skills to adjust equipment are critical for racers to win a race based on the contingency theory of social capital this study analysed comprehensive panel data of motorboat racers and revealed that bonding and bridging social capital had different impacts on performance according to life cycle stages of racers and changes in regulation first bonding social capital has a positive impact on performance when racers are less experienced and most need psychological aid stemming from strong ties second bridging social capital has a positive impact on performance when racers are more experienced and have accumulated absorptive capacity to learn efficiently from diverse sources of knowledge third both bonding and bridging social capital lose their explanatory power after the changes in regulation that shifted ownership of propellers from racers to the authority which could mitiga

proprietary public finance and economic welfare abstract we develop a positive theory of public finance in which the objective of tax and spending policy is to extract rents for the incumbent ruler the analysis shows how dependence of the incumbent ruler s survival probability on his tax and spending policy can lower the equilibrium tax rate and increase the equilibrium amount of spending on productive public services but only until the minimum credible tax rate which depends on the ruler s endogenous survival probability becomes a binding constraint the central result of the analysis is that if a relatively benevolent tax and spending policy is both necessary and sufficient for a high survival probability then the ruler s equilibrium policy is relatively benevolent

the finance growth nexus evidence from bank branch deregulation this paper provides evidence that financial markets can directly affect economic growth by studying the relaxation of bank branch restrictions in the united states we find that the rates of real per capita growth in income and output increase significantly following intrastate branch reform we also argue that the observed changes in growth are the result of changes in the banking system improvements in the quality of bank lending not increased volume of bank lending appear to be responsible for faster growth

financial intermediation and endogenous growth an endogenous growth model with multiple assets is developed agents who face random future liquidity needs accumulate capital and a liquid but unproductive asset the effects of introducing financial intermediation into this environment are considered conditions are provided under which the introduction of intermediaries shifts the composition of savings toward capital causing intermediation to be growth promoting in addition intermediaries generally reduce socially unnecessary capital liquidation again tending to promote growth

banking activities and local output growth does distance from centre matter ozyildirim s and onder z banking activities and local output growth does distance from centre matter regional studies in this paper the relation between local banking activities and local output growth is empirically studied in turkey during the period 1991 2000 although there is no legal restriction against regional banking the banking sector is spatially concentrated in turkey in this institutional structure the distance between headquarters and the local branches is argued to affect the role of financial intermediation in the development of provincial prosperity empirical findings suggest that banking activities have a significant positive impact on the per capita local output growth of regions especially on those that are distant from the financial centre however when bank loans are adjusted to the size of the local economy provincial gross domestic product gdp the relation between banking activities and the output per capita is found to be negative suggesting that these loans are us

growth of factor productivity in the turkish manufacturing industry at provincial level karadag m onder a o and deliktas e 2005 growth of factor productivity in the turkish manufacturing industry at provincial level regional studies 39 213 223 this paper estimates the total factor productivity tfp change of the private and public sectors in the turkish manufacturing industry in the selected provinces for 1990 98 it uses data envelopment analysis to compute malmquist productivity indices decomposed into two components namely efficiency change and technical change the results show that many of the provinces show improvement in tfp on average for the public sector while in the private sector only half the provinces show growth in tfp overall evidence of catching up can be observed only in the private sector the results also reveal that technical progress plays the main role in productivity growth

innovation regimes r d and radical innovations in telecommunications abstract by introducing the concept of innovation regimes the aim of this article is to show how the rapid pace of technological development in the telecom sector may be explained by the close links between the sector s own r d and the creation of numerous innovations many of which are radical in contemporary innovation theory a theoretical antinomy exists whereas the creation of incremental innovations is variously explained in terms of rational responses to markets dynamics of technological regimes dominant design etc radical innovations in contrast are explained in terms of serendipity chance or haphazard scientific discoveries evidence from analysis of innovations in the telecom sector suggests that innovation regimes have provided a capability of coordination direction and leadership in the creation of many of the radical technological innovations that have emerged in the sector thus one may claim that the strong innovation regimes and high r d intensity of the telecom sector at least until recently have provided a capability of creating innovations on purpose for a purpose the policy implications of this contradict some of the assumptions on which the prevailing market oriented r d governance models and policies are based and which are supported by contemporary innovation theories

rich regions poor regions and bank branch deregulation in spain abstractrich regions poor regions and bank branch deregulation in spain regional studies the links between financial deregulation and economic performance are evaluated in a european context specifically the study analyses the relaxation of bank branching restrictions in spain which triggered a remarkable interregional expansion of savings banks that coincided with an unprecedented period of sustained economic expansion although related questions have been widely investigated for the united states experiences in europe have received far less research attention an additional contribution of the paper lies in its use of quantile regression which enables the investigation of the possibility of economic effects taking into account the degree of regional development the potential endogeneity of some of the regressors is also explicitly considered results do not support the case for a positive effect of bank branch deregulation in spain out of region entry in particular does not seem to have had

financial intermediaries and financial markets a united kingdom regional perspective mckillop d g and hutchinson r w 1991 financial intermediaries and financial markets a united kingdom regional perspective reg studies 25 543 554 this paper attempts to identify on a united kingdom wide basis the regional dispersion of the various groupings of financial markets and intermediaries although london dominates there is however evidence of significant pockets of autonomous financial intermediaries in certain of the regions having established the framework the discussion proceeds to examine a selection of issues likely to impact upon the future growth performance of financial intermediaries at regional level three issues weigh particularly heavy in this part of the discussion the added flexibility now on offer to financial intermediaries due to information technology relocation within the financial services industry and its impact on regional financial sectors and european integration with special reference to regulation and the likely consequences for continued financial s

politics and economics in weak and strong states abstract while much research in political economy points out the benefits of limited government political scientists have long emphasized the problems created in many less developed nations by weak states which lack the power to tax and regulate the economy and to withstand the political and social challenges from non state actors i construct a model in which the state apparatus is controlled by a self interested ruler who tries to divert resources for his own consumption but who can also invest in socially productive public goods both weak and strong states create distortions when the state is excessively strong the ruler imposes such high taxes that economic activity is stifled when the state is excessively weak the ruler anticipates that he will not be able to extract rents in the future and underinvests in public goods i show that the same conclusion applies in the analysis of both the economic power of the state i e its ability to raise taxes and its political power i e its ability to remain entrenched from the citizens i also discuss how under certain circumstances a different type of equilibrium which i refer to as consensually strong state equilibrium can emerge whereby the state is politically weak but is allowed to impose high taxes as long as a sufficient fraction of the proceeds are invested in public goods the consensually strong state might best correspond to the state in oecd countries where taxes are high despite significant control by the society over the government

networks in entrepreneurship the case of high technology firms the value of networks as an integral part of the explanation of entrepreneurial success is widely acknowledged however the network perspective does not specify the role of networks in the emergence and early growth of a venture we have distinguished three entrepreneurial processes in new venture development i e discovery of opportunities securing resources and obtaining legitimacy which are of importance for survival and performance this paper examines how these processes are influenced by strong and or weak ties and whether the degree of innovation incremental versus radical acts as a contingency factor in the way network ties support entrepreneurial processes in this explorative study three cases on high technology firms in the netherlands provide empirical material enabling us to develop a number of propositions on the network effect in particular the mix of strong and weak ties on the three entrepreneurial processes

spatial evolution of population and industry in the united states what features characterize the evolution of the u s urban system in this past century to what extent has the 500 percent increase in national urban population during 1900 1990 been accommodated by growth in numbers versus sizes of cities given the radical changes in the u s economic geography has the relative size distribution of city sizes changed significantly with say strong increases in urban concentration and primacy a popular notion as urbanization slowed after world war ii did fluctuations in city sizes and upward downward mobility of cities dampen as an arthur scale economy framework would predict brian arthur 1990 finally what natural geographic features of a city promote growth how important are climate location neighbor cities and the like an interrelated set of questions concerns the agglomeration and mobility of industrial activity within the set of cities are industries that are subject to greater scale economies both more agglomerated and less mobile for industries that are not subject to scale economies why does agglomeration occur central to answering these questions is measuring the nature and extent of scale economies this paper reports results on these two sets of issues using population census data for 1900 1990 and manufacturers census data for 1963 1992 for a selection of machinery and high tech industries

the stability of american markets much of the evidence of coordination between corporations and their markets comes from cross sectional conducted within portions of the american economy during the past two decades we know especially for manufacturing during the late 1960s that certain structural qualities of markets predict profits and the organization of large firms but this evidence is open to an uncomfortable empirical question to what extent did the social structural qualities determining resource dependence in american markets change during the 1960s and 1970s so as to limit the generalizability of cross sectional evidence the analysis here shows that markets were dramatically stable in he social structure of production relations known to predict the structure of large firms relying principally on department of commerce data the article traces the american economy through the 1960s and 1970s in terms of 77 broadly defined markets describing the stability of market boundaries and patterns of transactions with suppliers and c

savings and predation we contrast the relationship between predation and the savings of its potential victim in two different simple models in the first model predation is an exogenous event in which savings are expropriated with some fixed probability in such a setting the higher the probability of expropriation the lower are savings in the second model we endow the predatory agent with a decision whether to expropriate or to devote his efforts to some productive endeavor in this second model the endogenous probability of expropriation can easily be positively correlated with savings in addition we show that predation is more damaging to the savings and utility of the victim in the second model jel d91 d74

do firms learn to create value the case of alliances we investigate whether firms learn to manage interfirm alliances as experience accumulates we use contract specific experience measures in a data set of over 2000 joint ventures and licensing agreements and value creation measures derived from the abnormal stock returns surrounding alliance announcements learning effects are identified from the effects of unobserved heterogeneity in alliance capabilities we find evidence of large learning effects in managing joint ventures but no such evidence for licensing contracts the effects of learning on value creation are strongest for research joint ventures and weakest for marketing joint ventures these results are consistent with the view that learning effects are more important in situations characterized by greater contractual ambiguity copyright 2000 john wiley sons ltd

the control of politicians in divided societies the politics of fear autocrats in many developing countries have extracted enormous personal rents from power in addition they have imposed inefficient policies including pervasive patronage spending i present a model in which the presence of ethnic identities and the absence of institutionalized succession processes allow the ruler to elicit support from a sizeable share of the population despite large reductions in welfare the fear of falling under an equally inefficient and venal ruler that favours another group is enough to discipline supporters the model predicts extensive use of patronage ethnic bias in taxation and spending patterns and unveils a new mechanism through which economic frictions translate into increased rent extraction by the leader these predictions are consistent with the experiences of bad governance ethnic bias wasteful policies and kleptocracy in post colonial africa

the voracity effect abstract we analyze an economy that lacks a strong legal political institutional infrastructure and is populated by multiple powerful groups powerful groups dynamically interact via a fiscal process that effectively allows open access to the aggregate capital stock in equilibrium this leads to slow economic growth and a voracity effect by which a shock such as a terms of trade windfall perversely generates a more than proportionate increase in fiscal redistribution and reduces growth we also show that a dilution in the concentration of power leads to faster growth and a less procyclical response to shocks jel f43 o10 o23 o40

business cycles and the relationship between concentration and price cost margins using a newly constructed panel data base we examine changes in price cost margins in 284 manufacturing industries between 1958 and 1981 a key finding is a dramatic narrowing of the spread between the margins of concentrated and unconcentrated industries over this period we provide evidence that this narrowing is a result of the greater sensitivity of price cost margins in more concentrated industries to demand fluctuations this finding is robust to the inclusion of other industry variables and to measures of import competition the results indicate that cross sectional estimates of the concentration margins relationship are likely to be both biased and misleading

declining predation during development a feedback process empirical evidence suggests that poorer countries have larger portions of predation we formulate a neoclassical growth model in which agents devote time either to produce or predate when the elasticity of substitution between labor and capital is lower than one the labor share rises with capital reducing the incentive to predate and increasing the incentive to produce throughout the transition consequently a feedback process between capital accumulation and predation arises which ampli es income di erences generated by di erences in productivity thus this paper helps understand why di erences among countries have remained stable and the key role that institutions play in development

regional interest rate pass through in italy this paper estimates the pass through and speed of adjustment of italian regional interest rates to changes in the money market rate for the period 1998q1 2009q4 our main findings suggest that the markup for the lending rates that banks charge are generally higher in the south than in the north moreover our results indicate that the pass through tends to be longer in southern regions we find little evidence supporting the hypothesis of asymmetric adjustment in the lending rates but detect some evidence supporting upward rigidity in the regional deposit rates

financial development growth and the distribution of income a paradigm is presented in which both the extent of financial intermediation and the rate of economic growth are endogenously determined financial intermediation promotes growth because it allows a higher rate of return to be earned on capital and growth in turn provides the means to implement costly financial structures thus financial intermediation and economic growth are inextricably linked in accord with the goldsmith mckinnon shaw view on economic development the model also generates a development cycle reminiscent of the kuznet hypothesis in particular in the transition from a primitive slow growing economy to a developed fast growing one a nation passes through a stage in which the distribution of wealth across the rich and poor widens

undermining the financial basis of regions the spatial structure and implications of the uk pension fund system martin r and minns r 1995 undermining the financial basis of regions the spatial structure and implications of the uk pension fund system reg studies 29 125 144 regional growth theory and regional policy traditionally focus on the process of industrial development relatively little is known about the flows of money and financial capital that shape that development this paper examines the spatial organization and implications of the uk pension fund system one of the principal circuits of financial capital in the national economy it is shown how the great bulk of pension fund contributions that originate right across the various regions of the uk are channelled into and controlled by financial institutions in the south east of the country moreover those funds are then invested primarily back into companies and organizations located or headquartered in the south east this spatially centralized system pursues liquidity rather than productive investment and little of the money trickles down to

regional finance a survey the role of money and nancial markets in the regional matters 1 economy has been attracting increasing attention in we start with a review of the treatment of money recent years it has been a topic of interest for longer in regional economics and then turn to the much

firm networks and firm development the role of the relational mix abstract this study examines the role of different networks called the relational mix on the development of the entrepreneurial firm our regression analysis of survey data from 60 venture capital financed firms questions the importance of network size on firm development rather our results suggest that different types of networks are more important for firm development in particular we found a significant positive relationship for reputational networks and a weak significant negative relationship for cooperative technology networks at founding with time to break even social networks at founding have no direct effect on time to break even and a significant negative relationship with sales in the years after foundation furthermore our findings show the important role of marketing information and co opetition networks relationships with direct competitors on firm development in the years after foundation these results suggest that the relational mix is a more appropriate construct for explaining network development than network size alone

strong ties weak ties and islands structural and cultural predictors of organizational innovation how does the tendency of entrepreneurs to engage in innovation relate to their structural and cultural embeddedness using micro data on entrepreneurial teams and the organizational innovations they attempt to develop this article presents a predictive model of creative action to address this question capacity for creative action is seen to be a function of the ability of entrepreneurs to i obtain non redundant information from their social networks ii avoid pressures for conformity and iii sustain trust in developing novel and potentially profitable innovations probit analyses of over 700 organizational startups suggest that these mechanisms exercise effects on innovation via the network ties and enculturation of entrepreneurs

regional financial sector models an application to the northern ireland financial sector hutchinson r w and mckillop d g 1990 regional financial sector models an application to the northern ireland financial sector reg studies 24 421 431 this paper presents an analysis of recent theoretical developments in the treatment of regional financial markets it starts from a position where regional financial markets are fully integrated in a national system with regional financial institutions having a neutral effect on their regional economy it then indicates how interregional differences in information costs can result in a degree of inter regional financial market segmentation creating conditions under which regional interest rates can diverge from national rates the theoretical analysis also demonstrates how market segmentation resulting from financial institutions with elements of regional autonomy can impact upon a region s ability to undertake profitable investment the applicability of these models is then tested employing the northern ireland financial sector as the control

political connection bank credits and growth evidence from turkey the pervasive existence of government owned banks in emerging economies is often justified by their provision of access to credit in remote and underdeveloped regions that are ignored by private banks this paper analyses whether credits provided by government owned and private banks have a significant role in regional growth and whether this role changes in politically connected areas in turkey our findings imply that private banks significantly improve the economic well being in all turkish provinces regardless of their development level or their political connection with the ruling party however credits by government owned banks are found to be positively related to the per capita growth rate only in the less developed provinces that are advocates of the ruling political party and also developed but not politically connected provinces these results suggest that government owned bank credits as implied by the political view are used for funding politically desirable projects or politically connected borrowers

the network dynamics of international new ventures this study uses multi site case research to advance a set of propositions regarding the network dynamics of early stage international new ventures the investigative approach builds on arguments that network theory and analysis are fundamental to international entrepreneurship in the spirit of cross disciplinary research perspectives from the entrepreneurship literature are embraced to help inform our understanding of international new venture networks

swords or plowshares a theory of the security of claims to property this paper develops a general equilibrium model of the allocation of resources among appropriative and productive activities the model emphasizes the distinction between offensive weapons which are the instruments of predation and fortifications which provide defense against predation the analysis of this model shows how the equilibrium security of claims to property is determined the analysis focuses on the possibility of a nonaggressive equilibrium in which no resources are allocated to offensive weapons and claims to property are fully secure we also analyze the complex relation between economic welfare and the security of claims to property we find for example that a relatively poor agent could be better off in an equilibrium with less secure claims to property

high tech r d subsidies estimating the effects of sematech abstract sparked by concerns about their shrinking market share 14 leading u s semiconductor producers with the financial assistance of the u s government in the form of 100 million in annual subsidies formed a joint r d consortium sematech in 1987 using compustat data on all u s semiconductor firms we estimate the effects of sematech on members r d spending profitability investment and productivity in so doing we examine two hypotheses the commitment hypothesis that sematech obligates member firms to spend more on high spillover r d and the sharing hypothesis that sematech reduces duplication of member r d spending whereas the commitment hypothesis provides a rationale for the government subsidies the sharing hypothesis does not we find that sematech induced members to cut their overall r d spending on the order of 300 million per year providing support for the sharing hypothesis

does local financial development matter we study the effects of differences in local financial development within an integrated financial market we construct a new indicator of financial development by estimating a regional effect on the probability that ceteris paribus a household is shut off from the credit market by using this indicator we find that financial development enhances the probability an individual starts his own business favors entry of new firms increases competition and promotes growth as predicted by theory these effects are weaker for larger firms which can more easily raise funds outside of the local area these effects are present even when we instrument our indicator with the structure of the local banking markets in 1936 which because of regulatory reasons affected the supply of credit in the following 50 years overall the results suggest local financial development is an important determinant of the economic success of an area even in an environment where there are no frictions to capital movements

financial development and economic growth views and agenda this critique argues that the preponderance of theoretical reasoning and empirical evidence suggests a positive first order relationship between financial development and economic growth the body of work would push even most skeptics toward the belief that the development of financial markets and institutions is a critical and inextricable part of the growth process and away from the view that the financial system is an inconsequential sideshow responding passively to economic growth many gaps remain however and the paper highlights areas in acute need of additional research