alternative approaches to money and growth this paper reexamines the issue of money and growth in an economy with both endogenous labor supply and endogenous capital stock using three recently developed approaches the money in the utility function approach the cash in advance approach and the transactions costs approach by establishing a qualitative equivalence between alternative setups the authors find economically justifiable conditions such that all comparative statics results derived from the aforementioned approaches are identical copyright 1992 by ohio state university press

monopolistic competition increasing returns to specialization and output persistence abstract devereux et al economics letters 1993 41 57 61 showed that introducing together imperfect competition and increasing returns to specialization into real business cycle rbc type models results in making output more persistent than the underlying technology shocks we carry out a simple generalization of their model which clearly disentangles the two features and show that the added persistence is actually because of the increasing returns to specialization

money output and income velocity this paper attempts to assess empirically the contribution of three structural shocks monetary institutional financial and fiscal and technological to output and velocity fluctuations in the national bank era and the post 1973 period to identify these shocks we impose only long run restrictions derived from a monetary growth model we find that higher money growth increases decreases velocity in the first second period depending crucially on the resulting changes in the transactions frequency credit enhancing financial or expansionary fiscal shocks have a permanent positive effect on velocity and a himp shaped effect on output whereas technological shocks cause velocity to decrease in the short run and output to move to a permanently higher level

promoting local foods in small island states the role of information policies ensuring the success of agriculture is at the heart of food security and it is necessary to examine strategies that tackle agricultural development through the production and consumption of sustainable food products one way to increase food security in small island states is to develop local food sectors by increasing consumers awareness about local products with sustainable characteristics we designed an economic experiment to assess consumers willingness to pay wtp for yams with sustainable characteristics the origin the intrinsic quality of an alternative variety and the mode of production the results showed that labelling significantly changes consumers valuation of the different yam profiles consumers wtp for local yams 2 85 kg 1 was significantly higher than for imported yams 1 80 kg 1 while the organic mode of production derives a significant premium if information on production methods has been disseminated the results also suggested that organoleptic characteristics of new varieties should not be overlooked we conclude on how the labelling strategy could be facilitated through a policy targeting the development of the local food sector

the u s patent system in transition policy innovation and the innovation process abstract this paper surveys the major changes in patent policy and practice that have occured in the last two decades in the u s and reviews the existing analyses by the economists that attempt to measure the impacts these changes have had on the processes of technological change it also reviews the broader theoretical and empirical literature that bears on the expected effects of changes in patent policy despite the significance of the policy changes and the wide availability of detailed data relating to patenting robust conclusions regarding the empirical consequences for technological innovation of changes in patent policy are few possible reasons for these limited results are discussed and possible avenues for future research are suggested

the drivers of efficient knowledge transfer performance evidence from british universities using data from the united kingdom this study explores the institutional and environmental factors that influence universities efficiency in knowledge transfer while studies of universities knowledge transfer performance have so far focused on patent commercialisation and research contracting with industry it is increasingly acknowledged that universities engage in a broader range of knowledge transfer activities including consulting public engagement and provision of knowledge intensive services when these are taken into account less research intensive universities and those with a greater share of staff in the arts and humanities improve their relative efficiency more specialised older and larger institutions are more efficient performers while research intensity is no longer a strong predictor of efficiency

endogenous growth and real effects of monetary policy r d and physical capital complementarities we study the real long run effects of the structural stance of monetary policy and of inflation in the context of a monetary growth model where r d is complemented with physical capital accumulation we look into the effects on a set of real macroeconomic variables that have been of interest to policymakers the economic growth rate real interest rate physical investment rate capital to labor ratio r d intensity and velocity of money these variables have been previously analyzed from the perspective of different separated strands of the theoretical and empirical literature additionally we analyze the long run relationship between inflation and both the effectiveness of real industrial policy shocks and the market structure assessed namely by average firm size we present novel cross country evidence on the empirical relationship between the latter and long run inflation

money and the welfare cost of inflation in an r d growth model this study analyzes the effects of inflation on r d and innovation driven growth in the theoretical section we incorporate money demand into a quality ladder model with elastic labor supply and derive the following results if the elasticity of substitution between consumption and the real money balance is less greater than unity then r d and output growth are decreasing increasing in inflation if either labor supply is inelastic or the elasticity of substitution between consumption and the real money balance is unity then social welfare monotonically increases as the nominal interest rate approaches zero i e the friedman rule quantitatively decreasing inflation in the us to achieve price stability improves welfare equivalent to a permanent increase in consumption of at least 0 5 in the empirical section we use cross country data to establish a negative and statistically significant relationship between inflation and r d

is the commercialization of european academic r d weak a critical assessment of a dominant belief and associated policy responses there is a widespread belief that eu underperforms in the commercialization of publicly funded research and that the appropriate policy response is to transfer the ownership of intellectual property rights to universities this paper assesses the validity of these twin beliefs in addressing the first we limit ourselves to sweden which still retains its teacher s exemption model in spite of confident statements made in the literature and by government we provide evidence to the contrary i e that swedish academia performs well in terms of commercialization we also have doubts about the usefulness of the medicine prescribed to cure the alleged problem largely drawing on us literature we argue that the medicine risks harming strong university industry networks biasing technical change reducing entrepreneurial activity and generating costs to universities which may be detrimental to technology transfer in conclusion we seriously question the validity of both beliefs

inflation targeting a new framework for monetary policy he world s central bankers and their staffs meet regularly in venues from basle to washington to share ideas and discuss common problems perhaps these frequent meetings help explain why changes in the tactics and strategy of monetary policymaking such as the adoption of money growth targets in the 1970s the intensification of efforts to reduce inflation in the 1980s and the recent push for increased institutional independence for central banks tend to occur in many countries more or less simultaneously whatever their source major changes in the theory and practice of central banking are of great importance for both individual countries and the international economy in this article we discuss a new strategy for monetary policy known as inflation targeting which has sparked much interest and debate among central bankers and monetary economists in recent years this approach is characterized as the name suggests by the announcement of official target ranges for the inflation rate at one or more horizons and by explicit acknowledgment that low and stable inflation is the overriding goal of monetary policy other important features of inflation targeting include increased communication with the public about the plans and objectives of the monetary policymakers and in many cases increased accountability of the central bank

finding the right partners institutional and personal modes of governance of university industry interactions we study two different governance modes of university industry interactions in the institutional mode interactions are mediated by the university through its administrative structures such as departments or dedicated units such as technology transfer offices while in the personal contractual mode interactions involve formal and binding contractual agreements between firms and individual academics carried out without the direct involvement of the university we argue that the choice of which form of governance to adopt involves different decision making processes for firms and that both governance forms have important roles to play in the context of university industry knowledge transfer relying on a representative sample of firms in the italian region of piedmont we examine the characteristics and strategies of firms that interact with universities under different governance modes our results indicate that ignoring personal contractual arrangements with individual researchers as the previous literature does amounts to overlooking at least 50 of university industry interactions the econometric estimations suggest that personal contractual interactions are used relatively more by small firms involved in technology and open innovation strategies while institutional interactions are mostly used by large firms that vertically integrate r d activities

contrasting models of the effect of inflation on growth the paper formulates a nesting model for studying the theoretical literature on inflation and endogenous growth it analyses different classes of endogenous growth models with different usage of physical and human capital with different exchange technologies first the paper shows that a broad array of models can all generate significant negative effects of inflation on growth second it shows that these models can be differentiated primarily by the fact whether there is a tobin type effect of inflation and also whether the inflation growth effect becomes weaker as the inflation rate rises a non linearity or stays essentially constant over the range of inflation rates the paper compares these features of the models to empirical evidence as a way to summarize the efficacy of the models

university patenting and its effects on academic research the emerging european evidence this paper surveys the existing fragmentary data on the growth of university owned patents and university invented patents in europe we find evidence that university patenting is growing but this phenomenon remains heterogeneous across countries and disciplines we found some evidence that university licensing is not profitable for most universities although some do succeed in attracting substantial additional revenues this might be due to the fact that patents and publications tend to go hand in hand in a dynamic setting however we fear that the increase in university patenting exacerbates differences across universities in terms of financial resources and research outcome

changes to university ipr regulations in europe and the impact on academic patenting this article develops a general framework to describe the changes in university ipr regulations in europe and their effects on the patenting activities of universities and on knowledge transfer processes understanding the effects of changes in ipr regulations on academic patenting is a complex issue and parallels with the us case can be misleading first despite the general trend towards institutional ownership university ipr regulations in europe remain extremely differentiated and there is no one to one mapping to the us system second it is difficult to disentangle the quantitative and qualitative effects of changes in ipr ownership regulations on academic patenting activities from the effects of concurrent transformations in the institutional cultural and organizational landscape surrounding academic knowledge transfer the article proposes a review and typological classification of national university ipr ownership systems on the basis of their development since 2000 and uses it to analyze the aggregate dynamics of academic patent ownership in several european countries the analysis of patterns of ownership of academic patents shows that there has been a general increase in university patenting since 1990 with a significant slowdown and even reduction in some countries after early 2000s accompanied by a switch in academic patents ownership in favor of university ownership though preserving the european specificity of high company ownership of academic invented patents

institutional determinants of university spin off quantity and quality a longitudinal multilevel cross country study the creation of spin off firms from universities is seen as an important mechanism for the commercialization of research and hence the overall contribution from universities to technological development and economic growth governments and universities are seeking to develop framework conditions that are conductive to spin off creation the most prevalent of such initiatives are legislative changes at national level and the establishment of technology transfer offices at university level the effectiveness of such initiatives is debated but empirical evidence is limited in this paper we analyze the full population of universities in italy norway and the uk three countries adopting differing approaches to framework conditions to test whether national and university level initiatives have an influence on the number of spin offs created and the quality of these spin offs building on institutional theory and using multilevel analysis we find that changes in the institutional framework conditions at both national and university levels are conductive to the creation of more spin offs but that the increase in quantity is at the expense of the quality of these firms hence the effect of such top down changes in framework conditions on the economic impact from universities seems to be more symbolic than substantive

the effects of inflation on the number of firms and firm size a typical money and growth model generally incorporates an implicit assumption that the number of firms or the set of goods available is fixed this paper attempts to investigate the implications of relaxing this assumption in a monopolistically competitive model with endogenous markup it is found that among other effects inflation reduces the number of firms and each firm s size moreover due to this new channel inflation induces secondary effects one direct implication is that the welfare costs of inflation in our framework are substantially higher than those documented in existing models with standard features our findings suggest that it is the lessening of competition that appears to be the primary driving force

inflation investment and growth a money and banking approach output growth investment and the real interest rate in long run evidence tend to be negatively affected by inflation theoretically inflation acts as a human capital tax that decreases output growth and the real interest rate but increases the investment rate opposing evidence this paper resolves this puzzle by requiring exchange for investment as well as consumption inflation then decreases the investment rate and still decreases both output growth and real interest up to some moderately high rate of inflation above which increasingly low investment finally causes capital to fall relative to labour and the real interest rate to rise

technology transfer offices and commercialization of university intellectual property performance and policy implications the recent increase in the rate of commercialization of intellectual property at us and european universities has important performance and policy implications we review recent studies of the antecedents and consequences of these activities and then draw some lessons learned for policy makers a key conclusion is that universities and regions must formulate and implement coherent and feasible technology transfer commercialization strategies

the behavior of money velocity in high and low inflation countries this paper presents a general equilibrium model of money demand where the velocity of money changes in response to endogenous fluctuations in the interest rate the parameter space can be divided into two subsets one where velocity is constant as in standard cash in advance models and another one where velocity fluctuates as in baumol 1952 the model provides an explanation of why for a sample of 79 countries the correlation between the velocity of money and the inflation rate appears to be low unlike common wisdom would suggest the reason is the diverse transaction technologies available in different economies

inflation and balanced path growth with alternative payment mechanisms the paper shows that contrary to conventional wisdom an endogenous growth economy with human capital and alternative payment mechanisms can robustly explain major facets of the long run inflation experience a negative inflation growth relation is explained including a striking nonlinearity found re peatedly in empirical studies a set of tobin 1965 effects are also explained and further linked in magnitude to the growth effects through the interest elasticity of money demand undis closed previously this link helps fill out the intuition of how the inflation experience can be plausibly explained in a robust fashion with a model extended to include credit as a payment mechanism

the welfare cost of inflation in general equilibrium abstract this paper presents a general equilibrium monetary model in which inflation distorts a variety of marginal decisions although individually none of the distortions is very large they combine to yield substantial welfare cost estimates a sustained 4 percent inflation like that experienced in the us since 1983 costs the economy the equivalent of 0 41 percent of output per year when currency is identified as the relevant definition of money and over 1 percent of output per year when m1 is defined as money the results illustrate how the traditional partial equilibrium approach can seriously underestimate the true cost of inflation

privatizing the intellectual commons universities and the commercialization of biotechnology abstract this paper analyzes universities recent attempts to adapt their policies and organizational arrangements in order to accommodate the commercialization of university biotechnology research we argue that these attempts have been severely hampered because internal and external parties have sought to enforce universities adherence to their historic commitment to create and sustain an intellectual commons for the benefit of society at large the standardized organizational arrangements universities maintain to administer this intellectual commons have also served to impede adaptive efforts we conclude that social contractual commitments and organizational standards can significantly affect the shape and outcome of negotiations over property rights and can place important limits on the scope of organizations potentially leading to the generation of new organizational forms