Cross–Sectoral Variation in Firm–Level Idiosyncratic Risk

We estimate firm–level idiosyncratic risk in the U.S. manufacturing sector. Our proxy for risk is the volatility of the portion of growth in sales or TFP which is not explained by either industry– or economy–wide factors, or firm characteristics systematically associated with growth itself. We find that idiosyncratic risk accounts for about 90% of the overall uncertainty faced by firms. The extent of cross–sectoral variation in idiosyncratic risk is remarkable. Firms in the most volatile sector are subject to at least three times as much uncertainty as firms in the least volatile. Our evidence indicates that idiosyncratic risk is higher in industries where the extent of creative destruction is likely to be greater.

Capability Matrix : A Framework for Analyzing Capabilities in Value Chains

This paper develops a Capability Matrix for analyzing capabilities of developing country firms that participate in global and national value chains. This is a generic framework to capture firm-level knowledge accumulation in the context of global and local industrial constellations, by integrating key elements of the global value chain (GVC) and technological capabilities (TC) approaches. The framework can visually portray characteristics of firms’ capabilities, and highlight a relatively overlooked factor in the GVC approach: local firms’ endogenous learning efforts in varieties of relationship with lead firms.

Investigation of biferroic properties in La0.6Sr0.4MnO3/0.7Pb(Mg1/3Nb2/3)O3â0.3PbTiO3 epitaxial bilayered heterostructures

Epitaxial bilayered thin films consisting of La0.6Sr0.4MnO3 (LSMO) and 0.7Pb(Mg1/3Nb2/3)O3â0.3PbTiO3 (PMN-PT) layers of relatively different thicknesses were fabricated on LaNiO3 coated LaAlO3 (100) single crystal substrates by pulsed laser ablation technique. The crystallinity, ferroelectric, ferromagnetic, and magnetodielectric properties have been studied for all the bilayered heterostructures. Their microstructural analysis suggested possible StranskiâKrastanov type of growth mechanism in the present case. Ferroelectric and ferromagnetic characteristics of these bilayered heterostructures over a wide range of temperatures confirmed their biferroic nature. The magnetization and ferroelectric polarization of the bilayered heterostructures were enhanced with increasing PMN-PT layer thickness owing to the effect of lattice strain. In addition, evolution of the ferroelectric and ferromagnetic properties of these heterostructures with changing thicknesses of the PMN-PT and LSMO layers indicated possible influence of several interfacial effects such as space charge, depolarization field, domain wall pinning, and spin disorder on the observed properties. Dielectric properties of these heterostructures studied over a wide range of temperatures under different magnetic field strengths suggested a possible role of elastic strain mediated magnetoelectric coupling behind the observed magnetodielectric effect in addition to the influence of rearrangement of the interfacial charge carriers under an applied magnetic field.

A dye-sensitized visible light photocatalyst-Bi24 O31 Cl10

The p-block semiconductors are regarded as a new family of visible-light photocatalysts because of their dispersive and anisotropic band structures as well as high chemical stability. The bismuth oxide halides belong to this family and have band structures and dispersion relations that can be engineered by modulating the stoichiometry of the halogen elements. Herein, we have developed a new visible-light photocatalyst Bi 24 O 31 Cl 10 by band engineering, which shows high dye-sensitized photocatalytic activity. Density functional theory calculations reveal that the p-block elements determine the nature of the dispersive electronic structures and narrow band gap in Bi 24 O 31 Cl 10. Bi 24 O 31 Cl 10 exhibits excellent visible-light photocatalytic activity towards the degradation of Rhodamine B, which is promoted by dye sensitization due to compatible energy levels and high electronic mobility. In addition, Bi 24 O 31 Cl 10 is also a suitable photoanode material for dye-sensitized solar cells and shows power conversion efficiency of 1.5%.

Realization of biferroic properties in La0.6Sr0.4MnO3/0.7Pb(Mg1/3Nb2/3)O3–0.3(PbTiO3) epitaxial superlattices

A set of symmetric and asymmetric superlattices with ferromagnetic La0.6Sr0.4MnO3 (LSMO) and ferroelectric 0.7Pb(Mg1/3Nb2/3)O3–0.3(PbTiO3) as the constituting layers was fabricated on LaNiO3 coated (100) oriented LaAlO3 substrates using pulsed laser ablation. The crystallinity, and magnetic and ferroelectric properties were studied for all the superlattices. All the superlattice structures exhibited a ferromagnetic behavior over a wide range of temperatures between 10 and 300 K, whereas only the asymmetric superlattices exhibited a reasonably good ferroelectric behavior. Strong influence of an applied magnetic field was observed on the ferroelectric properties of the asymmetric superlattices. Studies were conducted toward understanding the influence of conducting LSMO layers on the electrical responses of the heterostructures. The absence of ferroelectricity in the symmetric superlattice structures has been attributed to their high leakage characteristics. The effect of an applied magnetic field on the ferroelectric properties of the asymmetric superlattices indicated strong influence of the interfaces on the properties. The dominance of the interface on the dielectric response was confirmed by the observed Maxwell-Wagner-type dielectric relaxation in these heterostructures.

Interface dominated biferroic La0.6Sr0.4MnO3/0.7Pb(Mg1/3Nb2/3)O3–0.3PbTiO3 epitaxial superlattices

Superlattices composed of ferromagnetic La0.6Sr0.4MnO3 and ferroelectric 0.7Pb(Mg1/3Nb2/3)O3–0.3(PbTiO3) layers were fabricated on (100) LaAlO3 substrates by pulsed laser deposition technique. The ferromagnetic and frequency independent ferroelectric hysteresis characteristics established the biferroic nature of the superlattices. Influence of magnetic field was observed in tuning the P-E characteristics of the superlattices. A similar effect was observed on application of a high dc electric field to the samples. The nature of the observed ferroelectric properties and their modulation by applied magnetic and electric fields were thus discussed in connection to the ferroelectric/ferromagnetic interfaces.

Vertical R&D Sprillovers, Cooperation, Market Structure, and Innovation.

This paper studies vertical R&D spillovers between upstream and downstream firms. The model incorporates two vertically related industries, with horizontal spillovers within each industry and vertical spillovers between the two industries. Four types of R&D cooperation are studied : no cooperation, horizontal cooperation, vertical cooperation, and simultaneous horizontal and vertical cooperation. Vertical spillovers always increase R&D and welfare, while horizontal spillovers may increase or decrease them. The comparison of cooperative settings in terms of R&D shows that no setting uniformly dominates the others. Which type of cooperation yields more R&D depends on horizontal and vertical spillovers, and market structure. The ranking of cooperative structures hinges on the signs and magnitudes of three competitive externalities (vertical, horizontal, and diagonal) which capture the effect of the R&D of a firm on the profits of other firms. One of the basic results of the strategic investment literature is that cooperation between competitors increases (decreases) R&D when horizontal spillovers are high (low); the model shows that this result does not necessarily hold when vertical spillovers and vertical cooperation are taken into account. The paper proposes a theory of innovation and market structure, showing that the relation between innovation and competition depends on horizontal spillovers, vertical spillovers, and cooperative settings. The private incentives for R&D cooperation are addressed. It is found that buyers and sellers have divergent interests regarding the choice of cooperative settings and that spillovers increase the likelihood of the emergence of cooperation in a decentralized equilibrium.

Information Sharing and the Stability of Cooperation in Research Joint Ventures.

The model studies information sharing and the stability of cooperation in cost reducing Research Joint Ventures (RJVs). In a four-stage game-theoretic framework, firms decide on participation in a RJV, information sharing, R&D expenditures, and output. An important feature of the model is that voluntary information sharing between cooperating firms increases information leakage from the RJV to outsiders. It is found that it is the spillover from the RJV to outsiders which determines the decision of insiders whether to share information, while it is the spillover affecting all firms which determines the level of information sharing within the RJV. RJVs representing a larger portion of firms in the industry are more likely to share information. It is also found that when sharing information is costless, firms never choose intermediate levels of information sharing : they share all the information or none at all. The size of the RJV is found to depend on three effects : a coordination effect, an information sharing effect, and a competition effect. Depending on the relative magnitudes of these effects, the size of the RJV may increase or decrease with spillovers. The effect of information sharing on the profitability of firms as well as on welfare is studied.

Economic Development under Alternative Trade Regimes

How does openness affect economic development? This question is answered in the context of a dynamic general equilibrium model of the world economy, where countries have technological differences that are both sector-neutral and specific to the investment goods sector. Relative to a benchmark case of trade in credit markets only, consider (i) a complete restriction of trade, and (ii) a full liberalization of trade. The first change decreases the cross-sectional dispersion of incomes only slightly, and produces a relatively small welfare loss. The second change, instead, decreases dispersion by a significant amount, and produces a very large welfare gain.

Procyclical Productivity and Returns-to-Scale in Philippine Manufacturing

The Philippines is regarded as a highly oligopolistic economy, and it is argued that this is a cause of the relative stagnation of the economy to neighbouring East Asian economies. This presumption might be associated with increasing returns to scale and market power, which are consistent with the procyclical total factor productivity that is observed in the Philippines and the United States. However, this study found no strong evidence supporting increasing returns for aggregate manufacturing and three-digit manufacturing industries during 1956-1980 in the Philippines, based on data constructed by Hooley (1985). Further, this study does not support external effect discussed in Caballero and Lyons (1992).

Technology Choice, Change of Trade Structure, and A Case of Hungarian Economy

In the IT industry, there has been a remarkable increase in the demand for system LSI. A system LSI must be tailor-designed for each electrical appliance, and then produced. It is said that in recent years, this production method has made the IC cycle ambiguous. It can be sought that the choice of whether the economy pursues a development path centering on technology which is tradable or technology which is embodied in labor, depends on the historical background. In this paper, the economic background is explained in order to analyze and capture movements in the IT industry and technology. Then, an econometric model for Hungary has been constructed to estimate the effect of technological progress on the economy.