politics growth and inequality in rural china does it pay to join the party abstract economic reform is often constrained because rank and file bureaucrats responsible for implementation have vested interests that oppose change drawing on an unusual longitudinal survey data set for a representative rural county in northern china we show an alternative positive scenario consistent with the presence of an implicit performance based incentive contract that ties the household incomes of local officials to market liberalization increases in consumer demand and the provision of local public goods the mechanisms appear to be tolerated as the fruits of growth are shared fairly equitably thus allowing implementation of a politically and economically self reinforcing reform process

more shock than therapy market transition employment and income in russia 1991 1995 sixteen predictions from market transition theory are assessed using survey data on employment earnings and income in russia during the first five years of market reform although the private sector has grown self employment is still rare incomes are down and unemployment is up a distended income distribution reflects unprecedented income inequality distinctive features of late soviet era stratification persist low returns to education a gender gap in earnings and low earnings among professionals the russian market transition offers more opportunity in trade consumer services and speculation and less in manufacturing than do other emerging makets this corresponds to merchat capitalism and contradicts the predictions of market transition theory everything the communists told us about communism was a lie everything they told us about capitalism turns out to be true popular russian joke circa 1996

regional variation in earnings inequality in reform era urban china this article studies the regional variation in earnings inequality in contemporary urban china focusing on the relationship between the pace of economic reforms and earning determination through

patent pools as a solution to efficient licensing of complementary patents some experimental evidence production requiring licensing groups of complementary patents implements a coordination game among patent holders who can price patents by choosing among combinations of fixed and royalty fees summed across patents these fees become the total producer cost of the package of patents royalties because they function as excise taxes add to marginal costs resulting in higher prices and reduced quantities of the downstream product and lower payoffs to the patent holders using fixed fees eliminates this inefficiency but yields a more complex coordination game in which there are multiple equilibria which are very fragile in that small mistakes can lead the downstream firm to not license the technology resulting in inefficient outcomes we report on a laboratory market investigation of the efficiency effects of coordinated pricing of patents in a patent pool we find that pool like pricing agreements can yield fewer coordination failures in the pricing of complementary patents

market transition government policies and interprovincial migration in china 1983 1988 a 10 random sample of china 1988 2 1000 fertility and birth control survey data was analyzed to determine to what extent chinas transition to a market economy affects migration patterns in the country and to what extent the government policy of establishing rural enterprises reduced migration from rural areas the survey was conducted by chinas state family planning commission in july august 1988 and covered a nationally representative sample of individuals aged 15 64 years at the time of the survey data were collected on interprovincial migration trends for all members in the households surveyed the study findings concerning individual level characteristics of interprovincial migration during 1983 88 are consistent with previous research in china and in other developing countries however unique to the findings for china is the effect of province level characteristics individuals are more likely to move out of provinces with a large population and a lower level of economic development this phenomenon is in line with classic arguments about migration and economic development foreign investment slightly reduces migration out of provinces receiving investment with migrants being more likely to choose provinces with high levels of foreign capital investment as destinations foreign investment leads to both direct job opportunities and secondary opportunities created by economic growth

collateral damage for r d manufacturers how patent sharks operate in markets for technology patent sharks small firms that exploit information asymmetries in markets for technology to gain patent based competitive advantages challenge established theory by which i markets for technology benefit large firms and ii intellectual property rights systems strictly support markets for technology empirically linking the sharks different assault strategies to the patents they deploy we illustrate that patent sharks will likely be an enduring phenomenon in markets for technology we discuss policy and strategy implications copyright 2010 the author 2010 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

standard essential patents a major policy issue in standard setting is that patents that are ex ante not that important by being included into a standard may become standard essential patents in an attempt to curb the monopoly power that they create most standard setting organizations require the owners of patents covered by the standard to make a loose commitment to grant licenses on reasonable terms such commitments unsurprisingly are conducive to litigation this paper builds a framework for the analysis of these patents identifies several types of inefficiencies attached to the lack of price commitments and shows how structured price commitments restore competition and why such commitments may not arise spontaneously in the marketplace

chinese villages and townships as industrial corporations ownership governance and market discipline1 public firms in a reforming socialist economy face two problems the old soft budget constraint syndrome and new principal agent problems china s township village government owned enterprises tves outperform state owned enterprises soes in growth rate and productivity three explanations are proposed in the literature 1 tves represent informal or ambiguous private property rights which are most efficient in partial reform 2 the small size and scale of township village governments as industrial corporations allows officials to monitor tves directly and to limit their wherewithal for cross subsidizing 3 strict market disciplines facing tves render indirect market monitoring to mitigate agency problems effectively analyses of jiangyin data show that a while both superior to local soes village and township enterprises share similar productivity and b the scale of township village corporations slightly increases productivity i conclude that local state corporatism should be revised to inc

credible spatial preemption it is often argued that incumbent firms may deter entry by preemptive investment in new goods we show that these conclusions are reversed when multiproduct incumbentfirms may exit in response to entry once entrants are in an industry an incumbent will often want to withdraw some goods to prevent competition with the entrant from reducing profits on other goods such a reaction makes entry more attractive to a potential entrant the equilibrium industry structure is less likely to be monopolistic as the goods are better substitutes as exit costs are low and as the competition between producers of the same good is more intense

the impacts of transport energy consumption foreign direct investment and income on co2 emissions in asean 5 economies abstract in this study we incorporate new variables and assess the impact of transportation sector s energy consumption and foreign direct investment on co2 emissions for asean 5 economies using the cointegration and granger causality methods this study also attempts to validate the environmental kuznets curve ekc hypothesis our results reveal that the co2 emissions and their determinants are co integrated only in indonesia malaysia and thailand the long run elasticity estimation suggests that income and transport energy consumption significantly influence co2 emissions whereas fdi is not significant economic growth plays a greater role in contributing to co2 emission in asean 5 nonetheless we find that the inverted u shape ekc hypothesis is not applicable to the asean 5 economies especially in indonesia malaysia and thailand in the long run the bi directional causality between economic growth and co2 emissions is detected in indonesia and thailand while we find unidirectional causality running from gdp to co2 emissions in malaysia we also observe bi directional causality between transport energy consumption fdi and co2 emissions in thailand and malaysia as an immediate policy option controlling energy consumption in transportation sector may result in a significant reduction in co2 emissions however this may slow the process of economic growth in malaysia and indonesia alternatively we suggest policymakers to place more emphasis on energy efficient transportation system and policies to minimise fossil fuel consumption thus the quality of environment can be improved with less deleterious impact on economic growth

economic transformation and income inequality in urban china evidence from panel data using panel data of 4 730 urban residents drawn from 20 cities in china this article examines changes in income determinants between the prereform and reform eras to guide this empirical study a conceptual model is developed that emphasizes the coevolution of politics and markets to synthesize theoretical ideas in the recent debate on the transformation of state socialist societies the findings show significant changes in returns to education and in the rise of private hybrid firms in the reform era there is also strong evidence of institutional persistence in returns to positional power and in the organizational hierarchy these findings reveal multifaceted processes of transformation that call for more sophisticated theoretical models and in depth institutional analyses

the direction of innovation abstract how do innovation policies affect the direction of research is market based innovation too radical or too incremental we construct a novel and tractable model of the direction of innovation firms pursue inefficient research directions because they race to discover easy yet less valuable projects and because they work on difficult inventions where they can appropriate a larger portion of the social value fixing these inefficiencies requires policy to condition on properties of inventions that could have been discovered but were not policies which do not do so like patents and prizes may fail to encourage firms to research in the efficient direction even if they obtain the optimal quantity of r d

the nexus between urbanization renewable energy trade and ecological footprint in asean countries abstract economic growth accompanied by rising energy demand in asean countries have been unprecedented over these few years on the other hand the energy consumed in the asean region is predominantly non renewable which could have implications for sustainable development previous studies that have investigated the energy growth environment nexus for this region are inefficient in terms of the proxies used to measure environmental quality and the estimation techniques adopted as such this study explores the influence of renewable and non renewable energy consumption economic growth and urbanization on a more reliable environmental indicator ecological footprint from 1990 to 2016 while controlling for trade first and second generation unit root and cointegration tests are applied amidst evidence of cross sectional dependence findings reveal that economic growth trade and non renewable energy contribute significantly to environmental degradation in asean countries this suggests that the region is growing at the expense of its environment while also indulging in emission intensive trade further findings show a one way causality from urbanization to non renewable energy consumption policy directions and implications of the findings for sustainability are discussed

local elites and popular support for economic reform in china and india this article analyzes why it is that china an authoritarian political system has managed to generate more popular support for the reform process than india a democracy the authors argue that when local politicians and bureaucrats are more supportive of the reform process there is likely to be greater popular support for economic reform local political elite may be more supportive of reform in an authoritarian than in a democratic system because the level of local elite support for the reform process is influenced by the incentives faced by local elite in china institutional reform changed the incentives faced by local elite whereas in india reforms have not been accompanied by institutional changes that would encourage local elite to support reform to the same extent as in china the argument is based on local elite and mass surveys conducted in china and india in 1990 and 1996 respectively a logit model controlling for a variety of alternative explanations provides evidence that local elite

rethinking inequality decomposition with evidence from rural china we examine inequality decompositions by income source and describe a general regression based approach for decomposing inequality the approach provides an efficient and flexible way to quantify the roles of variables like education and age in a multivariate context we illustrate the method using survey data from china the empirical results demonstrate how sharply different conclusions can emerge for different decomposition rules we explain how these differences reflect the treatment of equally distributed sources of income and we discuss implications for how results from inequality decomposition are interpreted a renewed interest in economic growth political economy and the distribution of income has again placed the economics of income inequality firmly on the academic research agenda relatively poor performances in latin america have been contrasted with success stories in east asia and recent evidence on the changing income distributions of emerging economic giants like china has

carbon dioxide emissions and economic growth panel data evidence from developing countries in this paper we test the environment kuznet s curve ekc hypothesis for 43 developing countries we suggest examining the ekc hypothesis based on the short and long run income elasticities that is if the long run income elasticity is smaller than the short run income elasticity then it is evident that a country has reduced carbon dioxide emissions as its income has increased our empirical analysis based on individual countries suggests that jordan iraq kuwait yemen qatar the uae argentina mexico venezuela algeria kenya nigeria congo ghana and south africa approximately 35 per cent of the sample carbon dioxide emissions have fallen over the long run that is as these economies have grown emissions have fallen since the long run income elasticity is smaller than the short run elasticity we also examine the ekc hypothesis for panels of countries constructed on the basis of regional location using the panel cointegration and the panel long run estimation techniques we find that only for the middle eastern and south asian panels the income elasticity in the long run is smaller than the short run implying that carbon dioxide emission has fallen with a rise in income

between markets and politics organizational responses to reform in china in china s economic transition firms diversify assets through investments in the rapidly expanding service sector in response to organizational uncertainty using data from a random sample of firms in shanghai the author shows that there are two situations that cause this uncertainty economic instability where weak firms struggle to survive in the rapidly changing market system and administrative instability where large firms that were the most protected are now being forced to handle the responsibilities that were previously handled by the state the result is that both types of firm seek stability by spreading out risk through investment in low risk fast return markets revealing much about the economic reforms the overall strategy of a firm reflects at any given point in time important organizational facts any decision to fundamentally alter the deployment of internal resources represents a major structural change these kinds of changes do not occur often when they do they provide us wit

market transition industrialization and social mobility trends in postrevolution china1 this study examines trends in intergenerational class mobility in china by analyzing six comparable nationally representative surveys between 1996 and 2012 defying a simplistic unidirectional ac

do rising tides lift all boats the impact of secular and cyclical changes on poverty discussions about the antipoverty effects of economic growth in the united states have largely been predicated on john kennedy s metaphor that a rising tide lifts all boats but the magnitude of these effects has been a subject of debate since the inception of the war on poverty see lowell gallaway 1965 and henry aaron 1967 this debate has public policy as well as academic implications the greater the antipoverty effectiveness of growth the less the need for special programs or income supplements during economic expansions elsewhere we have shown that increased real income need not be associated with a decline in poverty see our 1984 and 1985 papers in fact poverty rates did not fall from 1982 to 1983 even though real median income increased and in 1984 the official poverty rate was about the same as it was in 1967 while real median family income was 7 1 percent above its 1967 level if a rising tide was lifting all boats the tide was late in many harbors in this paper we examine the relationship between macroeconomic conditions and poverty section i argues that several factors now limit the effectiveness of growth in reducing poverty section ii differentiates the effects of secular economic growth from those of cyclical recoveries the next section presents our interpretation of the data followed by a brief conclusion we show that growth had a large antipoverty effect through the early 1970 s but that the more recent experience has been different because growth rates have slowed and inequality has increased

innovation policy for directing technical change in the power sector this paper discusses policy instruments for redirecting technical change within the electricity sector to mitigate climate change first we unravel the mechanism behind directed technical change explaining why markets may underprovide innovations in expensive renewable technologies in comparison to innovations in energy efficient fossil fuel generators subsequently we characterize technical change in electricity generation technologies stressing the heterogeneity of knowledge spillovers both within and between clean electricity generation technologies we argue that there exists a rationale for a portfolio approach to innovation in the electricity sector i e optimal innovation policies are neither fully generic nor fully specific and they need to be adapted in response to new information learned by the government the existing innovation literature does not however provide a clear cut answer for designing such a policy we compare policy instruments and argue that public r d support to clean technologies either in the form of subsidies or prizes seems to be the prime candidate for implementing non generic innovation policy

licensing policy and technology adoption in standard setting organizations the standard setting organizations decisions on licensing policy and standard s technological specification and the ensuing implications for social welfare are analyzed the author finds the conditions under which a licensing rule that grants monopoly power to the licensors whose technology is adopted in the standard can be employed by the members of the consortium ex post licensing moreover it is shown that the adoption of ex post licensing might lead to the inefficient exclusion of an efficient stand alone licensor finally the author discusses the conditions under which a policy of ex ante licensing can be less efficient than ex post licensing jel k21 l15 l24 l42

efficient patent pools the paper builds a tractable model of patent pools agreements among patent owners to license sets of their patents it provides a necessary and sufficient condition for patent pools to enhance welfare and shows that requiring pool members to be able to independently license patents matters if and only if the pool is otherwise welfare reducing the paper allows patents to differ in importance asymmetric blocking patterns and licensors to also be licensees we undertake some initial exploration of the impact of pools on innovation the analysis has broader applicability than pools being relevant to a number of co marketing arrangements

market transition and the persistence of power the changing stratification system in urban china research on transitional socialist societies has explored trends in income inequality and issues concerning who gains and who loses during market reforms we find that income inequality in a major chinese city declined only slightly during the first decade of reform policies it then increased dramatically in the subsequent five years strategic position in the state bureaucracy continues to be an important determinant of income although connections to the market system are becoming alternate sources of advantage we interpret these findings in light of the historical and institutional context of urban china

empirics of world income inequality this article employs a common general formula for inequality indexes to answer several basic questions about intercountry income inequality in recent decades has inequality across nations increased or declined and why have earlier studies yielded mixed results have different rates of population growth played a significant role in the trend have large nations dominated the trend are the results robust over different inequality measures and different income series two findings stand out first different rates of population growth in rich and poor nations played the predominant role in determining change in the distribution of per capita income across nations second the centuries old trend of rising inequality leveled off from 1960 to 1989 the dependency theory thesis of a polarizing world system receives no support

shared patent rights and technological progress we study how to reward innovators who build on one another rewards come in the form of patents because patent rights are scarce the optimal allocation involves sharing more than one innovator s patent is in force at a given time we interpret such allocations as patents that infringe one another as licensing through an ever growing patent pool and as randomization through litigation we contrast the rate of technological progress under the optimal allocation with the outcome if sharing is prohibitively costly avoiding sharing initially slows progress and leads to a more variable rate of technological progress

safe nests in global nets internationalization and appropriability of r d in wireless telecom this paper documents the case of the wireless telecom industry to bring new empirical evidence to the debate on the internationalization of research and development r d activities us patent statistics on the four industry leaders ericsson motorola nokia and qualcomm illustrate the growing trend of the internationalization of r d over the 1990s yet we show that the most critical r d projects related to the development of wireless standards remain homebound the paper then leverages qualitative data collected through interviews with informed managers to provide a fresh interpretation for the homeboundedness of critical industrial r d the stickiness of core r d projects to domestic locations is related not only to organizational inertia and the unripe maturation of subsidiaries as suggested by prior literature but particularly to the headquarters centralization of intellectual property ip management which offers a high level of appropriability of r d results the unequal distribution of appropriability across corporate r d networks is at the base of the formation of safe nests domestic r d centers that are sheltered from the forces of globalization because they offer a desirable setting for the exploitation of technologies deriving from a stronger coordination of inventive activities with the management of ip

markets and inequality in transitional economies toward testable theories nee s 1989 and in this issue market transition theory contested by xie and hannum in this issue claims that market mechanisms have predictable implications for inequality compared to nonmarket allocation market exchange enhances the bargaining power of producers nee p 910 the core argument is that cadre advantages shall decline to the extent that markets replace redistribution as the dominant mode of economic allocation while in successive publications nee has altered his judgment about how far the market transition has proceeded in rural china and whether his theory does predict a decline of cadre privilege he has not altered the core claim about market allocation market economies vary widely in their patterns of power and privilege in ways unrelated to the extent to which a market economy has been established the variability of market economies warns against attempts to predict changes in inequality without first specifying the kinds of enterprises and other institutions that characterize the emerging market economy or even the characteristics of markets themselves we have been tempted into these predictions by the memorable polanyian contrast between two ideal typical economies redistributive and market that has proven a rich source of hypotheses about stratification szelenyi 1978 1983 and the theory of the firm kornai 1992 under state socialism this contrast has crystallized a research agenda by posing an important historical question about the social impact of the rise of market allocation in planned economies especially as it concerns the fate of communist officials but many now find that these ideal types and the continuum that bridges them are a poor guide to the analysis of emerging market economies see bian and logan 1996 lin 1995 rona tas 1994 1995 walder 1992 1995 and stark and xie and hannum in this issue general claims about the impact of markets should be viewed skeptically for the impact of markets works through the allocation of assets the characteristics of emerging markets and the political processes by which market economies are established markets per se are not the issue

a theory of market transition from redistribution to markets in state socialism state socialist redistributive economies are characterized by the allocation and distribution of goods through central planning this paper develops a theory of market transition which argues that in reforming socialist economies the transition from redistributive to market coordination shifts sources of power and privilege to favor direct producers relative to redistributors the shit improves incentives for direct producers stimulates the growth of private markets and provides to entrepreneurs an alternative path for socioeconomic mobility a set of hypotheses test the market transition theory with householdand village level data

markets and income inequality in rural china political advantage in an expanding economy when market reform generates rapid growth in an agrarian subsistence economy changes in inequality may be due to economic growth and structural change rather than to the intrinsic features of markets the case of post mao china is examined using nationally representative survey data gathered in 1996 to address unresolved questions about findings from 1980s surveys well into reform s second decade political officeholding has a large net impact on household income comparable to that of operating a private enterprise contrary to findings based on earlier surveys and expectations about the impact of growth cadre household advantages are stable across levels and forms of economic expansion returns to entrepreneurship however decline sharply with the spread of wage employment future declines in relative returns to political position are therefore unlikely to occur due to the further spread of private household entrepreneurship and theories of change based on this mechanism appear untenable

the emergence of a market society changing mechanisms of stratification in china this article examines the effect of institutional change the shift from redistribution to markets in altering the mechanisms of stratification new institutionalists maintain that interests are emb

the econometric consequences of an energy consumption variable in a model of co2 emissions abstract many studies that model the determinants of co 2 emissions treat energy consumption as one of its determinants itkonen 2012 argues that this causes underestimation of both the responsiveness of co 2 emissions to income growth and the turning point of the carbon kuznets curve we first demonstrate that itkonen s 2012 conclusions are sensitive to the assumed form of the relationship between energy consumption and income we then argue that the presence of an energy consumption variable in a model of co 2 emissions can lead to systematic volatility in its coefficients which has the potential to change their magnitude and sign we also argue that misleading cointegration test results can be generated by such a model the potential nature and severity of these effects are illustrated with data for seven countries

social inequalities in reforming state socialism between redistribution and markets in china this article extends market transition theory to an analysis of inequality under the conditions of partial reform in china logit regression analysis indicates cadres officials have no greater odds than other households of being among the privileged or avoiding poverty entrepreneurs andformer team cadres however are advantaged despite the rise of a hybrid elite of entrepreneurs who are currently cadres that capitalizes on redistributive power to gain competitive advantage in the marketplace increases in income inequality are modest when market reform stimulates improved economic performance the poor appear to benefit and experience comparable improvements in household income as a result there is only a slight increase in inequality at least in the early stages of market reform the empirical analysis is based on survey data collected in rural china in 1985

emerging ways to address the reemerging conflict between patenting and technological standardization the relationship between standards and intellectual property rights iprs is a complementary but troubled one the way it is managed affects the way stakeholders contribute to standards and may ultimately affect the way some technologies and even industries evolve a spate of recent legal controversies has been accompanied by the emergence of new mechanisms to help govern the risk of conflict here this article provides an empirical analysis of these attempts to reconcile the aims of these regimes

patent pool formation and scope of patents basic innovations are often fundamental to the development of applications that may be developed by other innovators in this setting we investigate whether patent pools can rectify the lack of incentives for a developer to invest in an application following green and scotchmer 1995 we also wonder whether broad basic patents are necessary in order to provide enough incentives for basic innovators we show that patent pools are more likely

ownership organization and income inequality market transition in rural vietnam in transitional economies the scale of economic enterprise and the allocation of property rights shape social structures and influence income distribution in agrarian economies where labor intensive family enterprises dominate political officials income advantages decline rapidly relative to those of private entrepreneurs larger enterprises however provide greater income opportunities for officials especially when a government retains an ownership stake in the initial phases of reform this article replicates the findings from an earlier study of rural china using comparable survey data from vietnam we find that during the first two decades of rural market reform in vietnam and china the scale and ownership of firms differed radically small family enterprises dominated rural development in vietnam whereas china s development was dominated by larger firms initially established by rural governments consequently while cadre income advantages have kept pace with those of private entrepreneurs

poverty reduction through land transfers the world bank s titling reforms and the making of subsistence agriculture abstract the world bank emphasizes land reform as a key pro poor intervention expecting the transfer of land to the rural poor to trigger a straight transition from poverty and subsistence to entrepreneurial and commercial smallholder farming this article asks how and why world bank prescriptions change in response to developments on the ground that contradict initial expectations to show that the transition to commercialization is hardly a straight one as it involves contradictory elements it builds on an analysis of close to twenty years of world bank reports on land reform in four post communist countries to show how and why the transfer of land and commercialization end up contradicting rather than mutually supporting each other the analysis shows that as a result of this contradiction wb inspired policies prioritize commercialization over poverty reduction and their underlying understanding of poverty has changed from poverty as lack of farmland to poverty as lack of alternatives to farming for the world bank the problem in these countries is not so much the failure of having pro poor results but the decreasing control over smallholders perceived to have responded to insufficient reforms by withdrawing from markets into subsistence yet the analysis further suggests that even though presently seen as a sign of underdevelopment the subsistence capacity of local populations following land transfers was in earlier reports encouraged as it was believed to have the effect of supporting the commercialization of the sector and relieving welfare systems this aspect of reforms is now relatively rarely mentioned and subsistence is assumed to be an effect of anything but reforms cast instead as a sign of insufficient market creation

more powerful panel data unit root tests with an application to mean reversion in real exchange rates unit root tests seeking mean or trend reversion are frequently applied to panel data we show that more powerful variants of commonly applied tests are readily available moreover power gains persist when the modifications are applied to bootstrap procedures that may be employed when cross correlation of a rather general sort among individual panel members is suspected copyright 2004 john wiley sons ltd

cross licensing and competition we study bilateral cross licensing agreements between n 2 firms that engage in competition after the licensing phase it is shown that the most collusive cross licensing royalty i e the one that allows the industry to achieve the monopoly profit is sustainable as the outcome of bilaterally efficient agreements in a symmetric setting if the terms of the cross licensing agreements are not observable to third parties the monopoly royalty is the unique symmetric bilaterally efficient royalty however when the terms of the agreements are public the most competitive royalty i e zero can also be bilaterally efficient policy implications regarding the antitrust treatment of cross licensing agreements are derived from these results

patents and cumulative innovation causal evidence from the courts cumulative innovation is central to economic growth do patent rights facilitate or impede such follow on innovation this paper studies the effect of removing patent protection through court invalidation on the subsequent research related to the focal patent as measured by later citations we exploit random allocation of judges at the u s court of appeal for the federal circuit to control for the endogeneity of patent invalidation we find that patent invalidation leads to a 50 percent increase in subsequent citations to the focal patent on average but the impact is highly heterogeneous patent rights appear to block follow on innovation only in the technology fields of computers electronics and medical instruments moreover the effect is entirely driven by invalidation of patents owned by large patentees that triggers entry of small innovators suggesting that patents may impede the democratization of innovation

the new patent intermediaries platforms defensive aggregators and super aggregators some assets are traded in liquid markets at transparent prices with the help ome assets are traded in liquid markets at transparent prices with the help of many thriving intermediaries houses and apartments stocks and other of many thriving intermediaries houses and apartments stocks and other fi nancial products books dvds electronics and all sorts of collectibles fi nancial products books dvds electronics and all sorts of collectibles

co2 emissions energy consumption and economic growth in the asean 5 countries a cross sectional dependence approach abstract we re examine the relationship between co2 emissions energy consumption ec and economic growth gdp for the five main association of southeast asian nations asean 5 countries over the period 1980 2016 our main contention is that the findings in previous studies that have examined the relationship between co2 ec and gdp in the asean 5 are biased because they fail to account for cross sectional dependence cd we show that conventional tests applied to our dataset suggest a misleading conclusion about the environmental kuznets curve ekc and granger causal relationship between co2 ec and gdp in the presence of cd when we apply a new panel test of granger non causality that addresses cd and heterogeneity we find considerable heterogeneity we find unidirectional granger causality running from gdp to co2 for malaysia the philippines singapore and thailand unidirectional causality running from gdp to ec in indonesia malaysia and thailand unidirectional causality running from ec to gdp in singapore and bidirectional causality between gdp and ec in the philippines we also find support for the ekc hypothesis for the asean 5 countries

patent pools and cross licensing in the shadow of patent litigation this paper develops a framework to analyze the incentives to form a patent pool or engage in cross licensing arrangements in the presence of uncertainty about the validity and coverage of patents that makes disputes inevitable it analyzes the private incentives to litigate and compares them with the social incentives it shows that pooling arrangements can have the effect of sheltering invalid patents from challenges this result has an antitrust implication that patent pools should not be permitted until after patentees have challenged the validity of each other s patents if litigation costs are not too large

tying foreclosure and exclusion in recent years the leverage theory of tied good sales has faced heavy and influential criticism in an important sense though the models used by its critics are actually incapable of addressing the leverage theory s central concerns here the author reconsiders the leverage hypothesis and argues that tying can indeed serve as a mechanism for leveraging market power the mechanism through which this leverage occurs its profitability and its welfare implications are discussed in detail copyright 1990 by american economic association

partial reform and the chinese bureaucracy in the post mao era using 1987 survey data of 988 bureaucrats in eight large cities i examine the effect of the recent economic reform on the chinese bureaucracy the distribution of bureaucrats in different types of organizations jobs hierarchical positions and bureaucratic compensation the results show mixed characteristics of the chinese bureaucracy in the partial reform where market and planning competence and political loyalty coexist there is evidence of the continuing dominance of the party state on bureaucratic personnel management on the other hand significant changes took place in the selection criteria and to a lesser extent in the institutional structure as evidenced in the promotion patterns and bureaucratic compensation these results point to the evolving organizational basis of state socialism in the transition process

property rights and stratification in socialist redistributive economies in socialist economies work organizations differ widely in the compensation they provide employees despite the absence of key product and labor market processes thought to ex plain such inequalities in market economies existing theories of stratification in socialist economies focus on the power and privilege of elites but inequalities among organizations are not created by political particularism or elite power in this paper i sketch elements of an institutional theory of stratification anchored in a conception of property rights the right to derive income from productive assets two aspects of property rights guide the analysis 1 the dispersion of property rights across a hierarchy of governmentjurisdictions and 2 the exercise of these rights by government jurisdictions as they extract revenues primarily through taxation extraction of revenues from a work organization varies with the budgetary resources of a government jurisdiction and the dependence of that jurisdiction on the out puts of the organization variation in revenue extraction in turn creates inequalities among work organizations in their abilities to provide benefits to employees an analysis of survey data on the provision of housing and benefits by work organizations in the large industrial city of tianjin china provides provisional support for these ideas s tudents of communist states have had little reason to dispute lenski s 1966 claim that the distribution of rewards in a society is a func tion of the distribution of power p 63 as ex emplified in szelenyi s wedding of elite theory to institutional economics this idea has been de veloped primarily in terms of the power of class es or occupational groups szelenyi 1978 be gan with the observation that planned economies operate according to redistributive rather than market principles however the process of re

optimal cross licensing arrangements collusion versus entry deterrence this paper analyzes optimal cross licensing arrangements between incumbent firms in the presence of potential entrants the optimal cross licensing royalty rate trades off incentives to sustain a collusive outcome vis a vis incentives to deter entry with the threat of patent litigation we show that a positive cross licensing royalty rate which would otherwise relax competition and sustain a collusive outcome dulls incentives to litigate against entrants our analysis can shed light on the puzzling practice of royalty free cross licensing arrangements between competing firms in the same industry as such arrangements enhance incentives to litigate against any potential entrants and can be used as entry deterrence mechanism

the first shall be last entrepreneurship and communist cadres in the transition from socialism this article reviews the sociological literature on the transition from socialism to capitalism it distinguishes between the erosion and transition phases and between traditional and corporate segments in the emerging private sector panel survey data from hungary show that during the transition ex communist cadres maintain their advantageous position and do especially well in the more dynamic corporate segment they are successful because human capital is important in both capitalism and socialism and because the cadres are able to convert past political power to economic advantage contrary to the findings of studies based only on agriculture the transition increases income inequalities

the price effects of international airline alliances abstract this paper provides evidence on the effect of international airline alliances on fares the main finding is that alliance partners charge interline fares that are approximately 25 percent below those charged by nonallied carriers according to our theoretical model the main source of this fare reduction is the internalization of a negative externality that arises from the uncoordinated choice of interline sub fares in the absence of an alliance the paper also looks for evidence of an anti competitive alliance effect in the gateway to gateway markets while the point estimates show that an alliance between two previously competitive carriers would raise fares by about 5 percent this effect is not statistically significant

differentiated standards and patent pools we consider patent pool formation by owners of essential patents for differentiated standards that may be complements or substitutes in use pooling improves coordination in terms of royalty setting within a standard but provokes a strategic response from licensors in the competing standard we characterise the incentives to form and defect from pools within standards and show how pool formation and stability depend on competition between standards we also examine strategic patent pool formation by consortium standards and show that policies promoting compatibility of standards may increase or decrease welfare depending on the effects on the incentives to form pools

cooperating with competitors patent pooling and choice of a new standard abstract i examine the efficiency of patent pooling in a setting that allows for the interplay between the standards process in which owners of essential intellectual property ip develop a new product and the subsequent pooling decision in which ip prices are coordinated if one of the ip owners is also the incumbent of a product that employs the current competing standard referred to as overlapping ownership then the relationship among the ip owners will be both vertical through their ip and horizontal through their competing interests in the final products consumers are better off when ip owners cooperate even when these owners are effectively competitors because of lower prices and greater product variety consumers prefer however that the agreements not admit firms with overlapping ownership these results inform antitrust policy on cooperative agreements among competitors

collaborative promotion of technology standards and the impact on innovation industry structure and organizational capabilities evidence from modern patent pools this study explores the impact of modern patent pools inter organizational collaborative arrangements for promoting the adoption of technology standards on the rate of follow on innovations based on pooled technologies the vertical structure of associated industries and organizational capabilities of noncollaborating firms on one hand the formation of modern pools can boost follow on innovation by lowering the search negotiation and licensing costs associated with pooled standards on the other hand modern pools may decrease the incentives to invest in follow on innovations because of cannibalization risks and grant back provisions to the extent that modern pools succeed in establishing a dominant standard their collaborative nature and their reliance on markets for technology can reduce technological uncertainty and appropriation hazards hence triggering vertical disintegration in related industries moreover by establishing a dominant standard modern pools can effectively diminish the relati

patents and innovation evidence from economic history abstract what is the optimal system of intellectual property rights to encourage innovation empirical evidence from economic history can help to inform important policy questions that have been di

patent pools and innovation in substitute technologies evidence from the 19th century sewing machine industry patent pools which combine complementary patents of competing firms are expected to increase overall welfare but potentially discourage innovation in substitutes for the pool technology this article exploits a new historical data set on changes in patenting and firm entry for a clearly defined pool technology and substitutes in the 19th century sewing machine industry this analysis reveals a substantial increase in innovation for an albeit technologically inferior substitute technology historical evidence suggests that the creation of a pool diverted innovation toward an inferior substitute technology by creating differential license fees and litigation risks

revolution reform and status inheritance urban china 1949 1996 do regime change and market reform disrupt patterns of intergenerational mobility china s political trajectory is distinctive from that of other communist regimes in two ways during its first three decades the regime enforced unusually restrictive barriers to elite status inheritance and during the subsequent market transition unlike most of its counterparts the communist party survived intact data from a multigeneration survey suggest that despite their obvious exclusion from the party and related administrative careers in the mao era certain prerevolution elites transmitted one type of elite status to their offspring to a surprising degree party elites in contrast were hit hard by radical maoism but recovered quickly afterward and their offspring inherited elite status at much higher rates

the role of patents in information and communication technologies a survey of the literature during the last few decades the number of patents in information and communication technologies has increased considerably an increasing number of patents and the associated fragmentation of ip rights have generated a series of potentially problematic consequences patent thickets royalty stacking the emergence of patent assertion entities increased patent litigation particularly around standard essential patents and the difficulties with defining fair reasonable and nondiscriminatory licensing terms are some of the most debated issues in the literature that we review in this paper we devote a specific section of our survey to patent quality currently one of the most debated issues surrounding the patent system in our analysis we mix theoretical and empirical arguments with a more policy oriented reasoning this allows us to better position the different issues in the relevant political and economic context

symmetric tragedies commons and anticommons an anticommons problem arises when there exist multiple rights to exclude in a lengthy law review paper michael a heller has examined the tragedy of the anticommons especially in regard to disappointing experiences with efforts to shift from socialist to market institutions in russia in an early footnote heller suggests that a formal economic model of the anticommons has not been developed this paper responds to heller s challenge we analyze the anticommons problem in which resources are inefficiently underutilized rather than overutilized as in the familiar commons setting the two problems are shown to be symmetrical in several respects we present an algebraic and geometric illustration and extend the discussion to several applications of greater importance we suggest that the construction is helpful in understanding the sources of major value wastage in modern regulatory bureaucracy the navigation of the danube is of very little use to the different states of bavaria austria and hungary in comparison of what it would be if any of them possessed the whole of its course till it falls into the black sea adam smith the wealth of nations 1776 bk 1 ch 3

structural change and post socialist stratification labor market transitions in contemporary russia in russia market transition has led to sweeping structural changes a long recession growth of the private sector expansion of certain branches of the economy and contraction of others a decrease in average firm size and regional differentiation in economic performance these structural changes had important consequences for stratification through their effects on individual labor market outcomes analyses of nine types of individual labor market transitions in russia using 1991 1997 work history data show that structural location has strong effects human capital and membership in the communist party of the soviet union also influence labor market prospects but not in ways consistent with general theories about how market transition affects stratification processes structural change plays a key role in determining the impact of market reforms on stratification but market transition produces variable patterns of structural change in different countries and in different regions within a single country the structural perspective demonstrates why market transition has variable consequences for stratification different prior conditions and reform policies produce different patterns of structural change

do patents work thickets trolls and antibiotic resistance this paper connects ideas from recent literature on the economics of intellectual property ip to address the question did the strengthening and broadening of ip rights from important patent policy changes in the us promote greater innovation the analysis rests on the theory of cumulative innovation which shows that if ip rights on a pioneer invention extend to follow on research and impediments to contracting exist then strengthening patents can actually reduce overall innovation recent empirical studies are consistent with the theory patents can significantly deter follow on research in complex technology areas where contracting is difficult computers electronics telecommunications but not in drugs chemicals and human genes i outline remedies from court decisions and antitrust policy for addressing inefficiencies from patent trolling patent thickets and the anti commons of fragmented ownership i then apply the analysis to the antibiotics market drawing on recent research to examine how patent and competition policies can be used to improve incentives for drug development in the battle against antibiotic resistance the literature provides persuasive evidence that the policy changes overreached in broadening and strengthening ip rights and reveals important patent reforms for improving the effectiveness of patent systems in the us and canada

elite opportunity in transitional economies command economies gave communist era elites administrative control and material privilege but severely restricted money income and private wealth markets and privatization have injected new value into public assets and create unprecedented opportunities for elite insiders these opportunities depend on the extent of regime change and barriers to asset appropriation regime change varies from the survival of the entire party hierarchy to its rapid collapse and defeat in competitive elections barriers to asset appropriation vary with the extent pace and form of privatization and the concentration and liquidity of assets different combinations of such circumstances jointly affect the extent to which prior elites obtain ownership or control of privatized assets use political office to extract larger incomes move into salaried elite occupations or fall out of the elite altogether regime change and barriers to asset appropriation affect change at the national level but outcomes vary across economic sectors because of characteristics of organizations elite positions and assets this elementary theory serves to integrate varied findings from recent research on central europe china and russia and yields predictions for other regions

entry for buyout the possibility of buying out an entrant has an important effect on entry deterrence entrants can blackmail the incumbent by threatening to keep prices low and buyout can make entry profitable which otherwise would not be in particular the entry deterrence policy of excess capacity to reduce the post entry price can not only fail but work against the incumbent the presence of multiple oligopolistic incumbents or multiple potential entrants however can discourage entry for buyout the long literature on entry deterrence has always assumed that if entry is made unprofitable no entry will occur but as followers of professional football may have suspected a clearly unprofitable competitor might rationally enter a market in the hopes of selling out to the incumbent i will model such a situation and try to show what conditions facilitate entry for buyout in the simplest entry deterrence model the incumbent successfully maintains monopoly by threatening to expand output and cut price after other firms enter but he succeeds only because potential entrants believe the threat if entrants are rational this strategy fails price warfare hurts the incumbent as well as the entrant so the monopolist would let the entrant have a share of profits after entry potential entrants foreseeing the accommodating response ignore the threat deterred entry is a nash equilibrium but not a perfect nash equilibrium it is nash because the entrant chooses to stay out given the incumbent s strategy of cutting prices after entry and the incumbent does not mind committing himself to cutting prices given that entry never occurs a perfect nash equilibrium is a set of strategies that is a nash equilibrium for every proper subgame if the game is started at any of the nodes of the game tree including those off the equilibrium path the strategies the agents pick to maximize their objective function from that node onwards must be part of the equilibrium strategy for the entire game in the subgame which begins after entry has already occurred the incumbent would not choose to cut prices so cutting prices after entry is not part of a perfect equilibrium in the perfect equilibrium entry occurs and is accommodated

the overvaluation of purchasing power parity abstract recent panel studies of purchasing power parity have reported strong evidence of mean reversion in real exchange rates however these studies fail to control for cross sectional dependence in the data this failure has dramatic consequences raising the significance level of tests with a nominal size of 5 percent to as much as 50 percent it is shown in this paper that controlling for cross sectional dependence no evidence against the random walk null can be found in panels of up to 64 real exchange rates this finding cannot be attributed to low power as there is ample power in panels of this size to reject the unit root null