Volume 10, Issue 1, January-December 2023
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Innovation norms during COVID-19 and Indonesian hotel performance: Innovative energy use as a mediating variable
COVID-19 adaptive strategy and SMEs’ access to finance
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To infinity and beyond: A teaching case on Rocket Lab and the emergence of New Zealand’s space ecosystem
The International Journal of Entrepreneurship and Innovation, Ahead of Print.
This teaching case focuses on the relationship between entrepreneurs, their ventures and the broader context—the innovation and entrepreneurship ecosystem (I&EE)—in which entrepreneurial activity occurs. Building on secondary data and informal conversations with industry experts, the case recounts the story of Rocket Lab, an aerospace manufacturer and launch service provider founded in 2006 in New Zealand. The case elaborates on how unique contextual conditions in combination with the founder's vision and skills enabled Rocket Lab to become a dominant force in the space sector, even though the firm was founded in a country with virtually no history in spacefaring and highlights that Rocket Lab's emergence constituted the foundation of a burgeoning space industry in New Zealand. In doing so, the case sensitises students to the importance of self-reinforcing and mutually interdependent relationships in well-functioning I&EEs and the role policymakers play in this context. At the same time, it allows a critical discussion of I&EEs, particularly if they are dominated by a small number of anchor firms.
This teaching case focuses on the relationship between entrepreneurs, their ventures and the broader context—the innovation and entrepreneurship ecosystem (I&EE)—in which entrepreneurial activity occurs. Building on secondary data and informal conversations with industry experts, the case recounts the story of Rocket Lab, an aerospace manufacturer and launch service provider founded in 2006 in New Zealand. The case elaborates on how unique contextual conditions in combination with the founder's vision and skills enabled Rocket Lab to become a dominant force in the space sector, even though the firm was founded in a country with virtually no history in spacefaring and highlights that Rocket Lab's emergence constituted the foundation of a burgeoning space industry in New Zealand. In doing so, the case sensitises students to the importance of self-reinforcing and mutually interdependent relationships in well-functioning I&EEs and the role policymakers play in this context. At the same time, it allows a critical discussion of I&EEs, particularly if they are dominated by a small number of anchor firms.
Communicating Data Uncertainty: Multiwave Experimental Evidence for UK GDP
Abstract
Economic statistics are commonly published without estimates of their uncertainty. We conduct two waves of a randomized controlled online experiment to assess if and how the UK public understands data uncertainty. A control group observes only the point estimate of GDP. Treatment groups are presented with alternative qualitative and quantitative communications of GDP data uncertainty. We find that most of the public understands that GDP numbers are uncertain. Quantitative communications of data uncertainty help align the public's subjective probabilistic expectations of data uncertainty with objective estimates, but do not decrease trust in the statistical office.
Markups, Tobin’s q, and the Increasing Capital Share
Abstract
Increasing markups have recently gained prominence as a leading explanation for the increasing share of income going to capital since the 1980s. However, the existing analysis has been limited to the United States, covers only short periods, and generally does not control for potentially important confounders. Constructing data for the share of income going to capital and markups based on Tobin's q over the period 1870–2018 for 21 advanced countries, this research examines the ability of markups to explain the movements of income shares and the tendency for factor shares to converge toward constants in the long run. We find strong support for the markup hypothesis.
Beyond the LTV Ratio: Lending Standards, Regulatory Arbitrage, and Mortgage Default
Abstract
Booming house prices are historically correlated with loose lending standards. Nonetheless, in Spain the loan-to-value (LTV) ratio failed to capture imbalances during the last housing boom. Using loan-level data from millions of mortgages we show that inflated collateral valuations, used by banks as a mechanism to circumvent regulation, distorted the informative value of LTV, and masked the accumulation of risk. We identify that regulation relying upon a single measure is more prone to suffer from regulatory arbitrage, and that the optimal policy mix varies over the financial cycle. Overall, our study provides useful insights for the implementation of borrower-based measures.
In Search of a Risk‐Free Asset: Search Costs and Sticky Deposit Rates
Abstract
I examine the role of costly consumer search for the pricing of deposits. Estimates of a model of heterogeneous search cost households reveal a large fraction of high-search-cost depositors composed of elderly and less financially sophisticated households. Those households grant banks significant monopoly power that results in low and asymmetric interest rate pass-through. The predictions of the estimated model are consistent with responses in the Survey of Consumer Finances to questions related to financial sophistication, search for investment return, and deposit allocations across multiple bank accounts. The estimated model also reveals a nonmonotone relationship between bank entry, deposit rates, and consumer surplus.
Does technology shape the relationship between FDI and growth? A panel data analysis
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