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on Network Economics |
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Issue of 2018‒11‒05
three papers chosen by Pedro CL Souza Pontifícia Universidade Católica do Rio de Janeiro |
| By: | Felix Tintelnot; Ayumu Ken Kikkawa; Magne Mogstad; Emmanuel Dhyne |
| Abstract: | We use Belgian data with information on domestic firm-to-firm sales and foreign trade transactions to study how international trade affects firm efficiency and real wages. The data allow us to accurately construct the domestic production network of the Belgian economy, revealing several new empirical facts about firms' indirect exposure to foreign trade through their domestic suppliers and buyers. We use this data to develop and estimate models of domestic production networks and international trade. We first consider a model of trade with an exogenous network structure, which gives analytical solutions for the effects of a change in the price of foreign goods on firms' production costs and real wages. To examine how gains-from-trade calculations change if buyer-supplier links are allowed to form or break in response to changes in the price of foreign goods, we next develop a model of trade with endogenous network formation. We take both models to the data and compare the empirical results to those we obtain using existing approaches. This comparison highlights the relevance of data on and modeling of domestic production networks in studies of international trade. |
| JEL: | E2 F14 L14 |
| Date: | 2018–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:25120&r=net |
| By: | Claudio A. Mora-García; Tomás Rau |
| Abstract: | This paper studies the effects of peers in the adoption of a Youth Employment Subsidy in Chile since its inception. We study the effects that former classmates’ and coworkers’ adoption has on one’s adoption. Identification comes from discontinuities in the assignment rule that allow us to construct valid instrumental variables for peers’ adoption. Using a comprehensive set of administrative records, we find that classmates and, especially, coworkers play a significant role in the adoption of the subsidy. Peer effects are determined during the early stages of the program’s implementation and vary by network characteristics and the strength of network ties. |
| Keywords: | Peer effects; subsidy adoption; partial population approach. |
| JEL: | H53 I38 C31 |
| Date: | 2018–10–25 |
| URL: | https://d.repec.org/n?u=RePEc:col:000518:016839&r=net |
| By: | IINO Takashi; INOUE Hiroyasu; SAITO Yukiko; TODO Yasuyuki |
| Abstract: | This study examines how the research collaboration of firms affects the quality of their innovation outcomes using comprehensive patent data for firms in the world from 1991 to 2010. Identifying research collaboration by co-patenting relationships, we find that research collaboration with other firms, particularly with foreign firms, leads to substantial improvement in innovation quality. We also observe an inverted U-shaped effect of the density of a firm's ego network and a positive effect of brokerage in the global network, especially for firms with international collaboration experiences. These results are applicable to the effect on the quality of innovation achieved individually without any collaboration, suggesting that the knowledge of firms diffuses to and is acquired by their collaboration partners. Finally, we find that the collaboration effect is larger in the 2000s than in the 1990s and varies across countries. |
| Date: | 2018–10 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:18070&r=net |