Maximising the Value of Innovation
Research commissioned by Europe’s leading venture capitalist 3i and conducted by the Economic Intelligence Unit (EIU) shows that despite the difficult economic climate, cutting back on R&D damages long-term growth prospects.
The statistical analysis conducted by the EIU looked at different elements of R&D in 29 OECD countries between 1993 to 2001. In particular, the research analysed the relationship between GDP growth and gross domestic expenditure … [ Read more ]
Content: Article | Sources: 3i, The Economist | Subjects: Economics, Innovation
Dissecting the Decline
A “share-weighting” analysis gives a better read on the market’s vital signs than major market indices.
Content: Article | Author: Craig Israelsen, Ph.D. | Source: Financial Planning | Subjects: Economics, Finance | Industry: Investment Banking
Knowledge Workers in the U.S.
The Global Internet Economy
By 2002, all but a handful of countries were connected to the Internet. The intertwining of the Internet and the globalization of finance, corporate governance, and trade raises questions about national models of technology development and property rights. The sudden ability of hundreds of millions of users to gain access to a global communication infrastructure spurred the creation of new firms and economic opportunities. The … [ Read more ]
Content: Book | Author: Bruce Kogut | Subjects: Economics, International
The Value of Control
U.S. corporate scandals such as Enron and Tyco have highlighted the fact that insiders enjoy benefits above and beyond those of the average shareholder-the so-called “private benefits of control.” How widespread are these benefits? What effects do they have on the development of a country’s securities market? Furthermore, how can such benefits be curbed? New research indicates that in spite of the recent corporate scandals … [ Read more ]
Content: Article | Author: Luigi Zingales | Source: Capital Ideas | Subjects: Economics, Finance | Industry: Investment Banking
The Economic Effects of Long-Term Fiscal Discipline
Before the Reagan era (and sometimes after it) Republicans were the stewards of fiscal discipline, preaching the gospel of deficit reduction. Democrats were the Keynesian profligates, saying that deficits generally didn’t matter. Now the parties’ positions are (generally speaking) reversed.
The issue of deficit reduction is crucial to the question of whether Bush’s proposed tax cuts will boost or retard economic growth. A recent … [ Read more ]
Content: Article | Authors: Peter R. Orszag, William G. Gale | Source: The Brookings Institution | Subject: Economics
Cheat Sheet: A Civilian’s Guide to the Economy
How to keep tabs on the United States economic health.
Content: Article | Author: Stephanie Clifford | Source: Business 2.0 | Subject: Economics
Reversing Japan’s Downward Spiral
New research estimates that taxpayer liability for the Japanese financial crisis will total at least 24 percent of Japan’s GDP.
Editor’s Note: this article is a bit topical, but the issues addressed and the importance and longevity of the topic lead me to include it.
Content: Article | Author: Anil Kashyap | Source: Capital Ideas | Subjects: Economics, International – Asia
Back to Basics: Fundamental Forces Spur Bull Market
The Commanding Heights: The Battle for the World Economy
The “commanding heights,” according to Pulitzer Prize-winner Daniel Yergin and international business advisor Joseph Stanislaw, are those dominant enterprises and industries that form the high economic ground in nations around the globe. In their analysis of the new world economy, they examine “the individuals, the ideas, the conflicts, and the turning points” that are responsible. And by considering events such as the ongoing Asian monetary … [ Read more ]
Content: Book | Authors: Joseph Stanislaw, Yergin | Subjects: Economics, International
US R&D Spending 2003
FDI Statistics
If you are searching for sound foreign direct investment numbers, this is a good site to bookmark. This statistics page is part of a larger site run by UNCTAD’s Division on Investment, Technology, and Enterprise Development. Here you’ll find data on global inflows of FDI in some 196 economies from 1993 to 2001. Also, the World Investment Directory tracks extensive information for individual countries including … [ Read more ]
Content: Article | Source: UNCTAD (United Nations Conference on Trade and Development) | Subjects: Economics, International
The Silent Takeover : Global Capitalism and the Death of Democracy
Cambridge University economist Hertz asserts that Reagan’s and Thatcher’s brand of free market capitalism has had dire social and political repercussions, although it has triumphed as the dominant world ideology and brought prosperity to many. She sensibly argues that with government in retreat from its traditional rule-setter role, multinational corporations have grown so powerful (51 of the hundred biggest economies in the world are corporations) … [ Read more ]
Content: Book | Author: Noreena Hertz | Subjects: Economics, Miscellaneous | Industry: Government
The New Financial Order: Risk in the Twenty-First Century
Shiller is best known for arguing, as he did in Irrational Exuberance, that stock market movements do not reflect underlying economic reality and that the volatility of the market makes the financial system unstable. It is therefore a surprise to find him advocating vast expansion of financial derivative markets to reduce the economic risk faced by individuals and countries. According to Shiller, governments should swap … [ Read more ]
Content: Book | Author: Robert J. Shiller | Subjects: Economics, Finance
The Cluster Effect: Can Europe Clone Silicon Valley?
Silicon Valley still dominates the technology map, but European high-tech clusters are closing in.
Editor’s Note: aside from the main topic, this article offers a decent overview of the concept of technology clusters.
Content: Article | Author: Des Dearlove | Source: strategy+business | Subjects: Economics, International – Europe
Making New Markets
The limitations of space have long dictated the economics of exchange transactions…In the Network Economy, the limitations of space no longer apply…But a funny thing happened on the path to frictionless capitalism. The economics of distance died, but the economics of attention took its place…But in many markets, customers find themselves overwhelmed with vendors clamoring for their attention, and vendors find themselves in a desperate … [ Read more ]
Content: Article | Author: Mohanbir Sawhney | Source: Business 2.0 | Subjects: Economics, IT / Technology / E-Business
Foreign Direct Investment
One Simple Test of Samuelson’s Dictum for the Stock Market
Jung and Shiller have an interesting paper that looks at Samuelson’s dictum: that is that the market is more efficient pricing individual stocks than getting the overall price level (i.e. the market) correct. In English it means that while we can price stocks relative to one another reasonably well, we can not price the overall market as well. [FinanceProfessor Annotation]
Content: Article | Authors: Jeeman Jung, Robert J. Shiller | Source: Social Science Research Network (SSRN) | Subjects: Economics, Finance | Industry: Investment Banking
Small Business and Employment in the US
Conducting Monetary Policy – Remarks by Governor Edward M. Gramlich
What is the goal of Moentary policy? It should be price stability according to Fed Governor Edward Gramlich who made his views known in a recent speech at the ASSA conference (AKA the AFAs) in Washington DC. “The long-run anchor is clearly price stability. Following Milton Friedman, inflation in the long run is a monetary phenomenon, as is deflation. Hence, the long-term goal … [ Read more ]
Content: Article | Author: Edward M. Gramlich | Source: The Federal Reserve Board | Subjects: Economics, Finance