A Theory of Growth and Volatility at the Aggregate and Firm Level

This paper presents an endogenous growth model that explains the evolution of the first and second moments of productivity growth at the aggregate and firm level during the post-war period. Growth is driven by the development of both (i) idiosyncratic R&D innovations and (ii) general innovations that can be freely adopted by many firms. Firm-level volatility is affected primarily by the Schumpeterian dynamics associated with the development of R&D innovations. On the other hand, the variance of aggregate productivity growth is determined mainly by the arrival rate of general innovations. Ceteris paribus, the share of resources spent on development of general innovations increases with the stability of the market share of the industry leader. As market shares become less persistent, the model predicts an endogenous shift in the allocation of resources from the development of general innovations to the development of R&D innovations. This results in an increase in R&D, an increase in firm-level volatility, and a decline in aggregate volatility. The effect on productivity growth is ambiguous. On the empirical side, this paper documents an upward trend in the instability of market shares. It shows that firm volatility is positively associated with R&D spending, and that R&D is negatively associated with the correlation of growth between sectors which leads to a decline in aggregate volatility.

Organisational change and the computerisation of British and Spanish savings banks, 1965-1985

In this article we explore organisational changes associated with the automation of financial intermediaries in Spain and the UK. This international comparison looks at the evolution of the same organisational form in two distinct competitive environments. Changes in regulation and technological developments (particularly applications of information technology) are said to be responsible for enhancing competitiveness of retail finance. Archival research on the evolution of savings banks helps to ascertain how, prior to competitive changes taking place, participants in bank markets had to develop capabilities to compete

Organisational change and the computerisation of British and Spanish savings banks, 1965-1985

In this article we explore organisational changes associated with the automation of financial intermediaries in Spain and the UK. This international comparison looks at the evolution of the same organisational form in two distinct competitive environments. Changes in regulation and technological developments (particularly applications of information technology) are said to be responsible for enhancing competitiveness of retail finance. Archival research on the evolution of savings banks helps to ascertain how, prior to competitive changes taking place, participants in bank markets had to develop capabilities to compete.comparative financial markets; United Kingdom; Spain; market structure; technological change; regulatory change; savings banks; banks

Adoption of New Technology

The contribution of new technology to economic growth can only be realized when and if the new technology is widely diffused and used. Diffusion itself results from a series of individual decisions to begin using the new technology, decisions which are often the result of a comparison of the uncertain benefits of the new invention with the uncertain costs of adopting it. An understanding of the factors affecting this choice is essential both for economists studying the determinants of growth and for the creators and producers of such technologies. Section II of this article discusses the modeling of diffusion and Sections III to V explore the determinants of diffusion and the evidence for their importance.

The industrial relations implications of automation

Thesis (M.S.)--Boston Universit

The ingenuity of common workmen: and the invention of the computer

Since World War II, state support for scientific research has been assumed crucial to technological and economic progress. Governments accordingly spent tremendous sums to that end. Nothing epitomizes the alleged fruits of that involvement better than the electronic digital computer. The first such computer has been widely reputed to be the ENIAC, financed by the U.S. Army for the war but finished afterwards. Vastly improved computers followed, initially paid for in good share by the Federal Government of the United States, but with the private sector then dominating, both in development and use, and computers are of major significance.;Despite the supposed success of public-supported science, evidence is that computers would have evolved much the same without it but at less expense. Indeed, the foundations of modern computer theory and technology were articulated before World War II, both as a tool of applied mathematics and for information processing, and the computer was itself on the cusp of reality. Contrary to popular understanding, the ENIAC actually represented a movement backwards and a dead end.;Rather, modern computation derived more directly, for example, from the prewar work of John Vincent Atanasoff and Clifford Berry, a physics professor and graduate student, respectively, at Iowa State College (now University) in Ames, Iowa. They built the Atanasoff Berry Computer (ABC), which, although special purpose and inexpensive, heralded the efficient and elegant design of modern computers. Moreover, while no one foresaw commercialization of computers based on the ungainly and costly ENIAC, the commercial possibilities of the ABC were immediately evident, although unrealized due to war. Evidence indicates, furthermore, that the private sector was willing and able to develop computers beyond the ABC and could have done so more effectively than government, to the most sophisticated machines.;A full and inclusive history of computers suggests that Adam Smith, the eighteenth century Scottish philosopher, had it right. He believed that minimal and aloof government best served society, and that the inherent genius of citizens was itself enough to ensure the general prosperity