During the past 20 years, the world pharmaceutical industry has experienced a dramatic increase in R&D intensity. We apply and extend a model developed by Grabowski and Vernon (2000, Journal of Evolutionary Economics, <Emphasis Type="Bold">10, 201–215) with a pooled data sample of the 15 publicly listed Japanese...</emphasis>

Panel data characterized by groupwise heteroscedasticity, cross-sectional correlation, and AR(1) serial correlation pose problems for econometric analyses. It is well known that the asymptotically efficient, FGLS estimator (Parks) sometimes performs poorly in finite samples. In a widely cited...

The global financial unrest over the last decade has shifted the attention of banking regulators (Basel II, 2001) in estimating default probabilities for a variety of borrowers. Within a binary choice panel data framework, the current study analyzes various models and cross-examines their...

Productivity dispersion across firms is large and persistent, and worker reallocation among firms is an important source of productivity growth. The purpose of the paper is to estimate the structure of an equilibrium model of growth through innovation that explains these facts. The model is a...

In 1997, the FDA relaxed regulations on direct-to-consumer (DTC) advertising for pharmaceutical products. This has led to a substantial increase in such expenditures which in turn raises some important public policy questions. For example, has this increase in DTC advertising affected the...

In this paper we extend the Bahk and Gort (1993) (Journal of Political Economy, <Emphasis Type="Bold">101, 561–583) approach of testing for the impact of learning by doing (LBD) on firm productivity using data on a panel of Spanish manufacturing firms. Specifically, we show that support for firm specific LBD and...</emphasis>

This paper investigates theoretical and empirical links between job tenure and short-term mobility wage gains. Standard theoretical approaches examining this subject predict a negative correlation between these variables. Furthermore, this result has been confirmed in different applied...

The forthcoming eastern enlargement of the European Union is generally perceived to constitute one of the most significant challenges to the process of European integration so far. The economic impact of the enlargement is likely to be considerable. The enlargement, as any other previous...