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on Knowledge Management and Knowledge Economy |
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Issue of 2007‒09‒24
seven papers chosen by Emanuele Canegrati Catholic University of the Sacred Heart |
| By: | Berliant, Marcus; Fujita, Masahisa |
| Abstract: | This paper presents a micro-model of knowledge creation and transfer for a couple. Our model incorporates two key aspects of the cooperative process of knowledge creation: (i) heterogeneity of people in their state of knowledge is essential for successful cooperation in the joint creation of new ideas, while (ii) the very process of cooperative knowledge creation affects the heterogeneity of people through the accumulation of knowledge in common. The model features myopic agents in a pure externality model of interaction. In the two person case, we show that the equilibrium process tends to result in the accumulation of too much knowledge in common compared to the most productive state. Equilibrium paths are found analytically, and they are a discontinuous function of initial heterogeneity. |
| Keywords: | knowledge creation; knowledge transfer; knowledge externalities; endogenous agent heterogeneity |
| JEL: | D83 O31 R11 |
| Date: | 2007–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:4973&r=knm |
| By: | Eric Penot (INNOVATION - Changement technique, apprentissage et coordination dans l'agriculture et l'agroalimentaire - [CIRAD : UMR85]) |
| Abstract: | The aim of this chapter is to describe changes in the Indonesian jungle rubber system from the angle of the production of innovation by farmers themselves (indigenous knowledge) and the process of integration of external technical innovations in an overall process of creation of innovation. In other words, the integration of indigenous knowledge at different stages of history with rubber has enabled, and continues to enable farmers to rely on the sustainable cropping and farming systems represented by agroforestry systems. |
| Keywords: | shifting agriculture ; complex agroforestry systems ; jungle rubber ; rubber ; adoption of innovations |
| Date: | 2007–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:hal-00173302_v1&r=knm |
| By: | Maarten van Rooij; Annamaria Lusardi; Rob Alessi |
| Abstract: | Individuals are increasingly put in charge of their financial security after retirement. Moreover, the supply of complex financial products has increased considerably over the years. However, we still have little or no information about whether individuals have the financial knowledge and skills to navigate this new financial environment. To better understand financial literacy and its relation to financial decision-making, we have devised two special modules for the DNB Household Survey. We have designed questions to measure numeracy and basic knowledge related to the working of inflation and interest rates, as well as questions to measure more advanced financial knowledge related to financial market instruments (stocks, bonds, and mutual funds). We evaluate the importance of financial literacy by studying its relation to the stock market: Are more financially knowledgeable individuals more likely to hold stocks? To assess the direction of causality, we make use of questions measuring financial knowledge before investing in the stock market. We find that, while the understanding of basic economic concepts related to inflation and interest rate compounding is far from perfect, it outperforms the limited knowledge of stocks and bonds, the concept of risk diversification, and the working of financial markets. We also find that the measurement of financial literacy is very sensitive to the wording of survey questions. This provides additional evidence for limited financial knowledge. Finally, we report evidence of an independent effect of financial literacy on stock market participation: Those who have low financial literacy are significantly less likely to invest in stocks. |
| Keywords: | Portfolio choice; Knowledge of Economics and Finance; Financial Sophistication. |
| JEL: | D91 G11 D80 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:146&r=knm |
| By: | Davis, Benjamin; Winters, Paul; Kirk, Angeli; Carletto, Calogero |
| Abstract: | This paper uses a duration analysis based on adoption data spanning more than 25 years from six communities in the Central Highlands of Guatemala. The analysis explores how household characteristics and external trends play into both the adoption and diffusion processes of non-traditional exports among smallholders. Adoption was initially widespread and rapid, which led nontraditional exports to be hailed as a pro-poor success, reaching all but the smallest landholders. However, over time more than two-thirds of adopters eventually dropped out of production of nontraditional exports. Based on the analysis, production of nontraditional exports appears to have delivered less prosperity to adopters than initially promised. Although smallholders may be enticed into entering into nontraditional exports markets when conditions are favorable, they may lack the capacity to overcome the difficulties that inevitably arise in complex types of cultivations and in highly variable global agricultural markets. Governmental and non-governmental organizations can attempt to mitigate these difficulties, but market forces may overwhelm their efforts, with some adopters still unable to compete in global markets. |
| Keywords: | Access to Finance,Rural Development Knowledge & Information Systems,Economic Theory & Research,Markets and Market Access,Rural Poverty Reduction |
| Date: | 2007–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4347&r=knm |
| By: | Sinha, Nistha; Raju, Dhushyanth; Morrison, Andrew |
| Abstract: | This paper reviews empirical findings from economic analyses of the role of gender equality and women ' s empowerment in reducing poverty and stimulating growth. Going beyond the large literature documenting the impact of female education on a range of development outcomes, the paper presents evidence on the impact of women ' s access to markets (labor, land, and credit) and women ' s decision-making power within households on poverty reduction and productivity at the individual and household level. The paper also summarizes evidence from studies examining the relationship between gender equality and poverty reduction and growth at the macro level. Although micro level effects of gender equality on individual productivity and human development outcomes have been well documented and have important ramifications for aggregate economic performance, establishing an empirical relationship between gender equality and poverty reduction and growth at the macro level has proven to be more challenging. The paper concludes by identifying priority areas for future research. |
| Keywords: | Access to Finance,Population Policies,Gender and Law,Gender and Development,Rural Development Knowledge & Information Systems |
| Date: | 2007–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4349&r=knm |
| By: | Thomas Wein (Institute of Economics, Leuphana University of Lüneburg); Heike Wetzel (Institute of Economics, Leuphana University of Lüneburg) |
| Abstract: | Reviewing the development of network access charges in the German electricity market since 2002 reveals significant variation. While some firms continually increased or decreased their access charges, a variety of firms exhibited discontinuousn behavior with price changes in both directions. From an economic viewpoint this price setting turbulence is astonishing because grid operators are non-contestable natural monopolists, which in this time period were regulated by Negotiated Third Party Access (NTPA). Depending on the eectiveness or ineectiveness of NTPA,expected behavior would be either regulated average cost prices or monopoly prices, but not the observed turbulence. Although in 2005 NTPA scheme was replaced by a Regulated Third Party Access (RTPA) scheme with a regulator, an analysis of the factors influencing the price setting behavior within this period oers valuable information for the new regulator and the still discussed new incentive regulation, which is expected to start in 2009. Using multivariate estimations based on firm data covering the years 2000-2005, we test the hypotheses that asymmetric influence of regulatory threat, dierent cost and price calculation knowledge, strategic use of structural features and the obligation to publish specific access charges have influenced the electricity network access charges in Germany. |
| Keywords: | Keywords: deregulation, natural monopoly, power industry |
| JEL: | D42 L43 L94 |
| Date: | 2007–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:62&r=knm |
| By: | Steven Pennings; Rod Tyers |
| Abstract: | The 1990s appreciation of the US$ has been blamed on the “irrational exuberance” of investors in the US IT boom. A core of these investors appeared to believe that technology-related productivity growth (due, in part, to knowledge spill-over externalities) would raise the relative US rate of return over a sustained period. This paper introduces a two country, dynamic general equilibrium model with international financial capital mobility and trade to investigate the conditions under which a single technology shock could cause such a sustained change in capital flows. We find that a once-off productivity shock, whether in the presence of (small-medium) externalities or not, leads to capital inflow and a real appreciation in the short term but is followed in the long term by a stabilisation of the capital account and a net depreciation of the real exchange rate. For a single shock to trigger long-term growth in relative capital returns appears to require unrealistically large externalities. The presence of adaptive expectations can lead to persistence and cyclical behaviour in the real exchange rate and current account. |
| JEL: | F21 F31 F32 F41 F43 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:acb:camaaa:2007-16&r=knm |