Competing or Colluding in a Stochastic Environment

This document analyses collusion by innovative firms and the role of patents in a continuous-time real options framework. A patent-investment race model is formulated in which innovative firms bargain and reach collusive agreements. It is shown that, while collusion always delays innovation, it does not necessarily delay competition. Depending on a number of factors, collusion can actually accelerate competition.Bargaining, Collusion, Competition, Geometric Brownian motion, Nash axiomatic approach, Stackelberg game

Entrepreneurship and Economic Growth: An Empirical Analysis

This paper proposes a new variable based on patent data to proxy for productive entrepreneurship. Data on self-employment is used as an alternative proxy. In particular, the paper studies the impact of entrepreneurship on economic growth by using these two measures. The study considers 22 OECD countries and finds a positive relationship between the proposed measure of productive entrepreneurship — degree of innovativeness of different nations — and economic growth, while the alternative measure, based on self-employment, appears to be negatively correlated with economic growth. The findings are backed by a battery of econometric specifications and techniques.cross-sectional analysis, dynamic panel data, economic growth, entrepreneurship, patents, self-employment, system estimation analysis

Multifactor Productivity and its Determinants: Al Empirical Analysis for Mexican Manufacturing.

We use data from the Annual Industrial Survey for 1996-2003. First, we estimate production functions by means of growth accounting exercises and panel data econometrics for the whole sector and for 14 comprehensive groups. Various measures of Multifactor Productivity (MFP) are constructed, as we consider diverse combinations of inputs with capital, labour, electricity and transport. This allows us to compare MFP growth rates between groups. Second, we analyse econometrically some of the determinants of MFP and Labour Productivity (LP) growth. We find that, on the one hand, there is some evidence of a positive relationship between market concentration and technology adoption; on the other hand, both technology adoption and human capital seem to be promoting productivity, whilst market concentration is exerting a negative influence on it. In sum, our results suggest that, once controlling for the effect on technology adoption, more concentration (conversely, less competition) has a negative impact on productivity.Panel data, Productivity, Manufacturing, Competition

Translog Cost Functions: An Application for Mexican Manufacturing.

We use translog cost functions to estimate own-price and substitution elasticities of input demands, economies of scale and average costs in Mexican manufacturing. Data from the Mexican Annual Industrial Survey is used for 1996, 2000 and 2003. We show that a model that allows for nonhomotheticity and nonunitary elasticities of substitution is appropriate to represent the production structure. Allen-Uzawa elasticities indicate the existence of substitution possibilities amongst inputs. The demand for electricity is essentially unitary elastic. All cross-price elasticities are less than one. Both scale economies and average costs diminish as the size of activity class increases. Economies of scale increased for any level of output. The differences in average costs between small and large activity classes were reduced and some disparities prevail in a number of manufacturing groups.Simultaneous equation models, Translog cost function, Manufacturing

The Yield Curve and its Relation with Economic Activity: The Mexican Case.

There are a significant number of papers that show that the slope of the yield curve has a certain ability to forecast real economic activity and inflation. However, in emerging economies this source of information has not been thoroughly used; Mexico is not an exception. The economic stability achieved in this country in recent years has allowed the government to issue, since 2001,long-term bonds. With more stable economic cycles, the information included in the long part of the yield curve could be a useful tool to estimate future economic activity. This document analyses the predictive power of the spread. Moreover, the spread is divided into two main components to analyse the origin of its predictive power. Next, the power of the spread to forecast economic cycles is tested. Last, out-of-sample tests of the spread are carried out. The findings show that the yield curve provides significant information about future economic activity.Budgetary Institutions, Fiscal Outcomes, Transparency.

ENTREPRENEURSHIP AND ECONOMIC GROWTH: AN EMPIRICAL ANALYSIS

This study examines the impact of entrepreneurship on economic growth by using a new variable based on patent data to proxy for productive entrepreneurship. Data on self-employment is used as an alternative proxy. The study considers 22 OECD countries and finds a positive relationship between the proposed measure of productive entrepreneurship — degree of innovativeness of different nations — and economic growth, while the alternative measure, based on self-employment, appears to be negatively correlated with economic growth. A battery of econometric specifications and techniques backs the findings.Econometric analysis, economic growth, entrepreneurship, patents, self-employment

Funciones de costos translogarítmicas. Una aplicación para el sector manufacturero mexicano

Se utiliza funciones de costos translogarítmicas para estimar elasticidades precio y de sustitución de las demandas por insumos, economías de escala y costos medios en las manufacturas mexicanas. Se analiza datos de la Encuesta Industrial Anual para 1996, 2000 y 2003. Se muestra que un modelo que no permite homoteticidad ni elasticidades unitarias en la función de costos parece ser el más adecuado para representar la estructura de producción. Elasticidades de Allen-Uzawa indican la existencia de posibilidades de sustitución entre los insumos. La demanda por electricidad es de elasticidad unitaria. Todas las elasticidades cruzadas son menores a 1. Tanto las economías de escala como los costos medios disminuyen conforme el tamaño de las clases de actividad aumenta. Las economías de escala aumentan para cualquier nivel de producción. Las diferencias en costos medios entre pequeñas y grandes clases de actividad se han reducido mientras que algunas disparidades se mantienen en ciertos grupos manufactureros