NBC News Scripts
WBAP-TV (Television station : Fort Worth, Tex.)
1954-12-31
Search results
21 records were found.
Organization Capital, Assignment, Productivity, Disparity, Persistence
Complementarity, underdevelopment trap, education, search,
This paper reexamines the effect of expansionary fiscal policy on real GDP in the presence of entrepreneurship, which is defined as firms' activities to predict and adapt to changes in consumers' tastes. As government expenditure cannot reflect changes in consumers' tastes, it weakens the social role of the firms' ability to process local information for predicting the changes. Hence, government expenditure cannot perfectly substitute for private consumption. It is shown that expansionary fiscal policy can lower real GDP when idiosyncratic risk and the substitutability of goods are large, and when firms have a strong ability to predict changes in consumer tastes. In addition, this paper shows that expansionary fiscal policy discourages firms from investing in activities that aid prediction in the short run. However, expansionary fiscal...
This paper examines a particular aspect of entrepreneurship, namely firms' ability to respond appropriately to unexpected changes in the environment (i.e., their adaptability). An increase in firms' adaptability improves allocative efficiency in a competitive economy, but can reduce it when opportunities are distorted. It is shown that adaptability can aggravate distortions in the presence of political risk. Because efficiency affects the total factor productivity (TFP) of an economy, the model can explain how entrepreneurship influences TFP. The quantitative effect of firms' adaptability on TFP is investigated using the Census of Manufacturing in Japan.
entrepreneurship, prediction ability, total factor productivity, allocative efficiency, aggregate production function.
entrepreneurship, prediction ability, total factor productivity, allocative efficiency, aggregate production function.
Limited Attention, Complementarity and Substitutability, Investment, Tobin's Q.
This paper provides a theoretical framework for analyzing one of the most important intangible assets in a firm: the ability to predict profitable investment opportunities. This paper shows theoretically how to measure the accuracy of information used to predict opportunities, and estimates the value of information in the context of a firm's investment decision problem. Empirical study confirms the theoretical results of the model: (1) prediction ability has a large positive impact on firm's expected profits; and (2) prediction ability increases the mean and the variance of the growth rate of a firm's capital stock.
This paper examines a firm's ability to respond correctly to an unexpected change in the environment (i.e., its adaptability). We develop a model that allows for empirical examination of the impact of a firm's adaptability on its expected profits. The theory shows that a firm's adaptability can be estimated by the squared correlation between an unexpected change and the firm's reaction. The estimates show that adaptability has a large positive impact on the average profit rate and the market value of a firm. We also find that an increase in risk is correlated with a rise in adaptability.
Entrepreneurship, Information, Prediction ability, Competition, Selection, Allocative efficiency, Productivity, Firm size distribution, E13, O40,
