Growth Opportunities, Technology Shocks, and Asset Prices

We explore the impact of investment-specific technology (IST) shocks on the crosssection of stock returns. IST shocks reflect technological advances embodied in new capital goods. Using a structural model, we show that IST shocks have a differential effect on the two fundamental components of firm value, the value of assets in place and the value of growth opportunities. This differential sensitivity to IST shocks has two main implications. First, risk premia on firms with abundant growth opportunities are different from those on firms with limited growth opportunities. Second, firms with similar levels of growth opportunities comove with each other, giving rise to the value factor in stock returns. Our model replicates the failure of the conditional CAPM to capture the value premium. Our empirical tests confirm the model's predictions for asset returns and investment rates.

Growth Opportunities, Technology Shocks, and Asset Prices

We explore the impact of investment-specific technology (IST) shocks on the cross section of stock returns. Using a structural model, we show that IST shocks have a differential effect on the value of assets in place and the value of growth opportunities. This differential sensitivity to IST shocks has two main implications. First, firm risk premia depend on the contribution of growth opportunities to firm value. Second, firms with similar levels of growth opportunities comove with each other, giving rise to the value factor in stock returns and the failure of the conditional CAPM. Our empirical tests confirm the model's predictions

New queer Greece: performance, politics and identity in crisis

No abstract available

Firm Characteristics and Stock Returns: The Role of Investment-Specific Shocks

Average return differences among firms sorted on valuation ratios, past investment, profitability, market beta, or idiosyncratic volatility are largely driven by differences in exposures of firms to the same systematic factor related to embodied technology shocks. Using a calibrated structural model, we show that these firm characteristics are correlated with the ratio of growth opportunities to firm value, which affects firms' exposures to capital-embodied productivity shocks and risk premia. We thus provide a unified explanation for several apparent anomalies in the cross-section of stock returns—namely, predictability of returns by these firm characteristics and return comovement among firms with similar characteristics.J.P. Morgan & Co

Technological Innovation, Resource Allocation, and Growth

We explore the role of technological innovation as a source of economic growth by constructing direct measures of innovation at the firm level. We combine patent data for US firms from 1926 to 2010 with the stock market response to news about patents to assess the economic importance of each innovation. Our innovation measure predicts productivity and output at the firm, industry and aggregate level. Furthermore, capital and labor flow away from non-innovating firms towards innovating firms within an industry. There exists a similar, though weaker, pattern across industries. Cross-industry differences in technological innovation are strongly related to subsequent differences in industry output growth.

Nanoflow over a fractal surface

This paper investigates the effects of surface roughness on nanoflows using molecular dynamics simulations. A fractal model is employed to model wall roughness, and simulations are performed for liquid argon confined by two solid walls. It is shown that the surface roughness reduces the velocity in the proximity of the walls with the reduction being accentuated when increasing the roughness depth and wettability of the solid wall. It also makes the flow three-dimensional and anisotropic. In flows over idealized smooth surfaces, the liquid forms parallel, well-spaced layers, with a significant gap between the first layer and the solid wall. Rough walls distort the orderly distribution of fluid layers resulting in an incoherent formation of irregularly shaped fluid structures around and within the wall cavities

Effects of surface roughness on shear viscosity

This paper investigates the effect of surface roughness on fluid viscosity using molecular dynamics simulations. The three-dimensional model consists of liquid argon flowing between two solid walls whose surface roughness was modeled using fractal theory. In tandem with previously published experimental work, our results show that, while the viscosity in smooth channels remains constant across the channel width, in the presence of surface roughness it increases close to the walls. The increase of the boundary viscosity is further accentuated by an increase in the depth of surface roughness. We attribute this behavior to the increased momentum transfer at the boundary, a result of the irregular distribution of fluid particles near rough surfaces. Furthermore, although the viscosity in smooth channels has previously been shown to be independent of the strength of the solid-liquid interaction, here we show that in the presence of surface roughness, the boundary viscosity increases with the solid's wettability. The paper concludes with an analytical description of the viscosity as a function of the distance from the channel walls, the walls’ surface roughness, and the solid's wetting properties. The relation can potentially be used to adjust the fluid dynamics equations for a more accurate description of microfluidic systems

On the politics of queer resistance and survival: Athena Athanasiou in conversation with Vassiliki Kolocotroni and Dimitris Papanikolaou

No abstract available

Technological Innovation, Resource Allocation, and Growth

We propose a new measure of the economic importance of each innovation. Our measure uses newly collected data on patents issued to U.S. firms in the 1926 to 2010 period, combined with the stock market response to news about patents. Our patent-level estimates of private economic value are positively related to the scientific value of these patents, as measured by the number of citations the patent receives in the future. Our new measure is associated with substantial growth, reallocation, and creative destruction, consistent with the predictions of Schumpeterian growth models. Aggregating our measure suggests that technological innovation accounts for significant medium-run fluctuations in aggregate economic growth and TFP. Our measure contains additional information relative to citation-weighted patent counts; the relation between our measure and firm growth is considerably stronger. Importantly, the degree of creative destruction that is associated with our measure is higher than previous estimates, confirming that it is a useful proxy for the private valuation of patents