Browsing by Subject "structural"

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Open Access
Dynamic Models of Human Capital Investment
(2015) Ashworth, Jared
My dissertation examines human capital investments and their role in individual's labor market outcomes. Chapter 2 analyzes how public school teachers decide to make human capital investments and the effects that these decisions have on their future labor market outcomes. In particular, I look at the decisions of employed teachers to obtain an advanced degree. Teachers' education and career decisions are modeled via a dynamic framework in the presence of teacher-specific unobserved heterogeneity. I find that teachers' decisions to obtain master's degrees are motivated by more than just an increase in salary. In particular, I observe teachers with master's degrees receiving a better draw on job characteristics, as measured by school quality, and that teachers are willing to pay between $1,500 and $20,000 to to move up one quartile in school quality. I also find that teachers value having broad access to online degree programs more than they dislike tuition costs. Counterfactual simulations by unobserved ability are consistent with a story that high-type teachers value both the salary increase and a better draw in career prospects, whereas low-type teachers are mostly interested in the salary increase.
Chapter 3 investigates the evolution over the last two decades in the wage returns to schooling and early work experience. Using data from the 1979 and 1997 panels of the National Longitudinal Survey of Youth, we isolate changes in skill prices from changes in composition by estimating a dynamic model of schooling and work decisions. Importantly, this allows us to account for the endogenous nature of the changes in educational and accumulated work experience over this time period. We find an increase over this period in the returns to working in high school, but a decrease in the returns to working while in college. We also find an increase in the incidence of working in college, but that any detrimental impact of in-college work experience is offset by changes in other observable characteristics. Overall, our decomposition of the evolution in skill premia suggests that both price and composition effects play an important role. The role of unobserved ability is also important.
Open Access
Research and Development Competition in the Chemicals Industry
(2008-04-24) Finger, Stephen R
This dissertation is composed of two related chapters dealing with research and development. I evaluate the effects of the Research and Experimentation Tax Credit on the Chemicals Industry and then examine the determinants of research joint ventures and technological licenses. The first chapter evaluates the equilibrium effects of the Research and Experimentation Tax Credit, taking into consideration firm interactions. The tax credit was put into place to counteract the underinvestment in private R&D caused by firms not internalizing the benefits of technological spillovers from their research. However, this rationale ignored the impact of product market competition. I propose and estimate a structural dynamic oligopoly model of competition in intellectual assets to capture the impact of interactions between firms in the industry. I estimate the dynamic parameters of the model using methods from Bajari, Benkard, and Levin (2007). I build upon previous estimators by incorporating unobserved firm-level heterogeneity using techniques from Arcidiacono and Miller (2007). I use publicly available panel data on firms' R&D expenditures and their patenting activities to measure innovations. In the data, I observe firms that persistently invest more in research and generate more innovations than other firms that are observationally similar. I model this heterogeneity as an unobserved state that raises a firm's research productivity. In my analysis, I find that increased investment in R&D by more advanced firms due to the subsidy, was largely offset by decreases by smaller firms because of the substitutability of knowledge in product market. This greatly reduced the effectiveness of the policy to spur innovation and limited its impact on social welfare. The second chapter examines the cooperation between innovating firms either through technology licensing or research joint ventures. Both of these types of arrangements help to facilitate the dissemination of productive knowledge permitting the increased application of beneficial innovations. As opposed to the first chapter which considers how untargeted, and unintended transfers of knowledge in the form of spillovers, effected an industry, this chapter examines directed transfers of knowledge. I analyze a cross industry data set of joint ventures and technology licensing deals to examine how industry features affect the manner in which knowledge is shared and how the sharing effects research capabilities of deal participants.