Impact of Changing Facets of Inter-firm Interactions on Manufacturing Excellence: A Social Network Perspective of Indian Automotive Industry.

The inherent complexity of the innovation process puts interaction among firms and their specificities concerning the patterns of interaction at the center-stage. Hence, an uncovering of the interactive pattern among firms in the industry may reveal many hidden patterns, viz., the existing dependence and dominance structure of firms and the evolving dynamical changes based their on. Guided by these, this paper studies the vertical relational structure of automotive and auto component firms in Indian automotive supply chain where a clear ‘unequal balance of power’ is observed. We find that the industry network shows some prominent scale-free structural properties and complex dynamical behaviour. While analyzing further the Indian automotive industry’s possible evolutionary features we draw innovation and sustainability characteristics of this network, its inclination towards vulnerability and other policy implications.

Spatial Growth Volatility and Age-structured Human Capital Dynamics in Europe.

In a semi-parametric spatial vector autoregressive setting this paper investigates the role of age-structured human capital on output comovements in Europe. Using the proportion of age-structured human capital growth and its degree of appropriations in output production as twin measures of distance, we find significant positive spatial growth volatility/persistence.Spatial growth volatility, Non-linear growth, Age-structured human capital, Semi-parametric VAR.

A Note on Shock Persistence in Total Factor Productivity Growth

We study implications of persistence of shocks in total factor productivity (TFP) growth under Bayesian framework for a set of African countries over the period 1970-2003. Contrary to convention, we find that stochastic unit root is present for most of the African countries and that there is time-varying dependence structure in the underlying processes. The implication of our finding is that the persistence process governing TFP series is non-linear, stationary for some period and (mildly) explosive for others pointing to the fact that linear policy rules to counteract stochastic shocks in TFP may not prove useful. The repeat of TFP cycles is traced to this behaviour.Total factor productivity persistence, stochastic unit root, time varying dependence, Bayesian mechanism, Africa

Age-structured Human Capital and Spatial Total Factor Productivity Dynamics

This paper models total factor productivity (TFP) in space and proposes an empirical model for TFP interdependence across spatial locations. The interdependence is assumed to occur due to age-structured human capital dynamics. A semi-parametric spatial vector autoregressive framework is suggested for modeling spatial TFP dynamics where the role of demographic state and technological change are explicitly incorporated in the model to influence their spatial TFP co-movements. Empirical scrutiny in case of Asian countries suggests that cross-country human capital differences in their accumulation and appropriation pattern significantly influenced TFP volatility interdependence. The finding of complementarity in TFP in spatial locations calls for joint policy program for improving aggregate and individual country welfare.Total factor productivity, Spatial growth, Non-linearity, Human capital, Age-structure, Semi-parametric VAR

Shock persistence in output and the role of stochastic population growth

This paper illustrates both analytically and empirically that stochastic long-memory in economic growth arises due to the presence of a long-memory in population growth. Specifically, we show that the long-run conditional mean and variances of economic growth are functions of stochastic long-memory in demographic system. This is well-supported by an empirical example.economy-demographic interaction, long-memory, economic growth, stochastic population, stochastic economic growth.

Human capital accumulation and spatial TFP interdependence

'Dieser Artikel erstellt einen Beweis für die internationale Interdependenz der Totalen Faktorproduktivität (TFP) zur langfristigen human kapital Akkumulation mit Hilfe eines räumlich im Panel semi-parametrischen vektorautoregressiven Verfahrens. Die empirische Studie bezieht sich auf 15 asiatische Länder für den Zeitraum 1970-2000.' (Autorenreferat)'This article provides evidence of cross-country total factor productivity (TFP) interdependence due to human capital accumulation over time by employing a semi-parametric spatial vector autoregressive technique in the panel. Empirical study covers a set of 15 Asian countries over the time period 1970-2000.' (author's abstract)

Space matters: Understanding the real effects of macroeconomic variations in cross-country housing price movements

Changes in macroeconomic conditions can significantly determine directions and magnitudes of cross-country housing price movements. We demonstrate that such effects are consistently over-estimated when ‘spatial frictions’ are merely assumed, but are not explicitly modeled in the empirical framework. The extent of over-estimation bias has significant policy implications

How Effective are Policy Interventions in a Spatially-Embedded International Real Estate Market?

We introduce the role of `space' in analysing the effect of macroeconomic policy interventions on cross-country housing price movements. We build an empirically testable analytical model and test our theoretical predictions for a panel of European countries over the period 1985-2015. Our aim is to demonstrate that while macroeconomic policy exerts a significant impact on international housing markets, the magnitude of such impacts may be overestimated in the absence of spatial frictions. To test our hypotheses, we employ a spatial dynamic panel method and quantify \emph{intra}- and \emph{inter}-country differences of the effects of macroeconomic policy interventions on spatially interdependent housing markets. Endogeneity issues arise in our estimation, which we ameliorate by employing the spatial Durbin model for panel data. Following this approach, we include spatial, temporal and spatio-temporal lags for identification purposes. We show that a spatially-embedded model produces relatively smaller and correct signs for macroeconomic variables in contrast to the traditional non-spatial model. It is concluded that empirical estimates from the traditional model are consistently over-estimated. These have significant policy implications for the exact role of macroeconomic interventions in housing price movements. A battery of robustness tests and evaluations of predictive performance confirm our results

The distributional effects of adaption and anticipation to ill health on subjective wellbeing

Adaption and anticipation to reported illness upon subjective wellbeing is analysed across the wellbeing distribution. Anticipation effects are muted, but substantial adaption effects are apparent that differ markedly over the range of wellbeing, being most evident at the upper quartile

A Bayesian analysis of total factor productivity persistence

'This paper studies persistence properties of total factor productivity (TFP) from Bayesian perspective. Emphasizing that classical unit root test for TFP cannot determine the probability whether a stochastic shock to the series is permanent, we design a Bayesian unit root test for TFP. Examination for a set of African economies' TFP data show that the probability of having a unit root is very high for majority of countries. The evidence of high-persistence has implications for perpetual growth and business cycles.' (author's abstract