Economy
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- 20 Apr 2021
- Working Paper Summaries
The Emergence of Mafia-like Business Systems in China
This study sheds light on the political pathology of fraudulent, illegal, and corrupt business practices. Features of the Chinese system—including regulatory gaps, a lack of formal means of property protection, and pervasive uncertainty—seem to facilitate the rise of mafia systems.

- 08 Jun 2019
- Working Paper Summaries
The Gift of Global Talent: Innovation Policy and the Economy
High-skilled workers in today’s knowledge-based economy are arguably the most important resource to the success of businesses, regions, and industries. This chapter pulls from Kerr’s book The Gift of Global Talent to examine the migration dynamics of high-skilled individuals. He argues that improving our knowledge of high-skilled migration can lead to better policy decisions.

- 24 Apr 2019
- Research & Ideas
The 'Amazon Effect' Is Changing Online Price Competition—and the Fed Needs to Pay Attention
Amazon's power in the retail sector puts price pressure on what competitors charge, with implications for how federal regulators govern inflation, says Alberto F. Cavallo. Open for comment; 0 Comments.

- 20 Mar 2019
- Working Paper Summaries
In the Shadows? Informal Enterprise in Non-Democracies
With the informal economy representing a third of the GDP in an average Middle East and North African country, why do chronically indebted regimes tolerate such a large and untaxed shadow economy? Among this study’s findings, higher rates of public sector employment correlate with greater permissibility of firm informality.

- 19 Feb 2018
- Working Paper Summaries
The Supply Chain Economy: A New Framework for Understanding Innovation and Services
This study shows that a large and dynamic supply chain economy plays a crucial role in innovation and in the creation of well-paid jobs. Traded service suppliers are particularly important. Policies that help suppliers access skilled labor, buyers, and capital could be beneficial for fostering innovation and economic growth.

- 16 Feb 2018
- Working Paper Summaries
A New Categorization of the US Economy: The Role of Supply Chain Industries in Innovation and Economic Performance
This paper provides a novel industry categorization that quantifies the supply chain economy in the United States. Suppliers of goods, and particularly services, to business and government are a distinct and large sector, and play an important role in national innovation and economic performance.

- 30 Jan 2018
- Working Paper Summaries
Credit Supply Shocks, Network Effects, and the Real Economy
Using data for Spain between 2003 and 2013, this study examines firms’ responses to credit supply shocks during times of boom (expansion) and bust (financial crisis and recession). Results indicate that propagation of these shocks through the Spanish production network doubles the magnitude of the real effects typically estimated in the literature. This study also shows how such effects vary greatly during booms and busts.

- 23 Sep 2017
- Working Paper Summaries
Nowcasting the Local Economy: Using Yelp Data to Measure Economic Activity at Scale
Data from online platforms ranging from Yelp to Zillow offer the potential for improved measurement of the local economy. This paper finds that Yelp data can predict business growth, as measured by the Census Bureau, before official statistics are released. Predictive power increases with population density, income, and education level.
- 24 May 2010
- Research & Ideas
Stimulus Surprise: Companies Retrench When Government Spends
Research from Harvard Business School suggests that federal spending in states appears to cause local businesses to cut back rather than grow. A conversation with Joshua Coval. Closed for comment; 0 Comments.

- 20 Feb 2009
- Working Paper Summaries
When Does Domestic Saving Matter for Economic Growth?
The researchers begin with a simply stated question: Can a country grow faster by saving more? Long-run growth theories imply that a country can grow faster by investing more in human or physical capital or in R&D, but that a country with access to international capital markets cannot grow faster by saving more. Domestic saving is therefore not considered an important ingredient in the growth process because investment can be financed by foreign saving. From the point of view of standard growth theory, the positive cross-country correlation between saving and growth that many commentators have noted appears puzzling. HBS professor Diego Comin and colleagues develop a theory of local saving and growth in an open economy with domestic and foreign investors. Key concepts include: Domestic saving is more critical for adopting new technologies in developing rather than developed economies. Familiarity with the technology frontier reduces its cost of adoption. Advanced countries readily adopt the frontier technology, but for countries far from the technology frontier, it is too expensive to adopt such technology without outside help. Entrepreneurs in these countries need to rely on foreign investors. However, domestic entrepreneurs may not deliver on their input contribution unless they have invested sufficient capital in the project. This co-investment is in turn financed out of domestic saving, highlighting the role of domestic saving in economic growth. Closed for comment; 0 Comments.
- 06 Nov 2008
- Op-Ed
Selling Out The American Dream
The American Dream has been transformed from an embodiment of the country's core values into a crass appeal to materialism and easy gratification. One result: the current economic crisis, says professor John Quelch. The federal government isn't helping. Key concepts include: Underpinning the collapse of the housing bubble is a demand-side problem: the American Dream hijacked. Politicians on both sides have been equally culpable in defining the American Dream in material terms. Marketers also took advantage. Citizens who acted responsibly have seen the values of their homes and 401(k) plans collapse. Those who acted irresponsibly have barely been inconvenienced. Closed for comment; 0 Comments.
Buy Now, Pay Later: How Retail's Hot Feature Hurts Low-Income Shoppers
More consumers may opt to "buy now, pay later" this holiday season, but what happens if they can't make that last payment? Research by Marco Di Maggio and Emily Williams highlights the risks of these financing services, especially for lower-income shoppers.