Rajeev K. Goel

Corruption and government size: A disaggregated analysis

Using annual state-level data over 1983–1987, this paper examines the effect of government size on corruption by public officials by including both demand and supply side incentives for engaging in corrupt practices. Our objectives are twofold. First, we assess the relationship between the incidence of corruption and overall measures of the size of the federal government and the state-local sector in each state. Second, we explore what kinds of government activities are more likely to be successful in deterring abuse of public office. Our results are generally supportive of Beckers “crime and punishment” model. Regarding the primary focus of the paper, our results show that government size, in particular spending by state governments, does indeed have a strong positive influence on corruption.

The Interdependence of Cigarette and Liquor Demand

This research makes at least two contributions to the literature focusing on demand for liquor and cigarettes. First, we establish empirically whether these goods are substitutes or complements in consumption. Second, results from our analysis permit answers to questions about whether states should consider setting or changing tax rates on cigarettes and liquor as a joint decision to maximize tax revenues.

Causes of Corruption: History, Geography, and Government

Corruption, which remains a serious problem in many countries, has prompted considerable research in recent years. This paper adds to the extant literature with insights on factors influencing corrupt activity. Using cross-country data for about 100 nations, the roles of national history, geography, and government are examined to see how they affect conditions for corruption, both qualitatively and quantitatively. The innovative aspects of this research include use of a wide set of historical, geographical, and governmental determinants of corruption, as well as detailed assessment of several previously considered determinants. The main issues addressed are the effects of the size and scope of government on the incidence of corruption across countries, and the significance of historical and geographic factors in corruption. Regarding the first question, the authors find the size and scope of government can significantly affect corruption. On the second, it is shown that historical institutional inertia in older countries and new rent-seeking opportunities in younger nations can encourage corruption, while certain geographic factors can mitigate corruption. The paper ends with discussion aimed at the policymaker.

Irreversibility of R&D investment and the adverse effect of uncertainty: Evidence from the OECD countries

Abstract Using annual data for nine OECD countries covering the period 1981–1992, we find a much sharper adverse effect of uncertainty on R&D investments, which are likely to be highly irreversible, than on non-R&D (and aggregate) investments.

Guidelines for successfully transferring government-sponsored innovations☆

The purpose of this paper is to develop guidelines that managers of government-sponsored R&D could use in identifying appropriate technology transfer strategies for specific innovations. The paper begins with a description of six types of commercialization strategies that have been successfully used by federal agencies: contracting R&D to industrial partners, working with industrial consortia, licensing to industry, influencing key decision makers, working with broker organizations, and generating end-user demand. Next the results of nine case studies of innovations are summarized: five have been fully commercialized and four have been semi-commercialized. These case studies illustrate the need to tailor commercialization strategies to specific innovations.Three ways of classifying innovations (based on technological, market, and policy criteria) are proposed. Technological criteria evaluate inventions on scientific and technical grounds, while market criteria evaluate inventions with respect to characteristics of the marketplace. Policy criteria refer to a government agencys resources and goals. Once these evaluations are completed, the choice of a commercialization mode is facilitated.Finally, guidelines for selecting a technology transfer strategy are developed, based primarily on the five fully commercialized innovations. These guidelines are summarized in a matrix which presents the relationships between the evaluation criteria and appropriate technology transfer strategies. The guidelines are tested by applying them to the semi-commercialized innovations. The consistency between the recommended strategies and the strategies actually used is examined.

Quasi-Experimental Price Elasticities of Cigarette Demand and the Bootlegging Effect

This paper updates the Lyon and Simon quasi-experimental price elasticities of cigarette demand and studies their sensitivity to changes in the cigarette market over time as well as their sensitivity to the effects of bootlegging. The results indicate a downward trend in these elasticities over time and an upward bias for states where bootlegging exists. However, once the comparison group is modified to include bootlegging-free states only, this difference over time and across groups becomes statistically insignificant.

Corruption in transition economies: Effects of government size, country size and economic reforms

This paper uses annual pooled data over 1998–2002 for transition countries to examine whether government size or country size matters more in its impact on corruption; and whether piecemeal reforms or comprehensive transition reforms are desirable for corruption reduction. Our results show that greater economic prosperity leads to lower corruption, and contrary to findings for other nations, a bigger government size seems toreduce corruption in transition nations. The geographic size of a country is positive and significant, suggesting that more spread out countries would have a harder time controlling corruption. Comprehensive transition reforms might work best at corruption reduction.

Organization of Markets for Science and Technology

The traditional concentration of basic research activities in academic settings, with applied research more prevalent in industrial settings, is a distinguishing feature of science and technology markets. This structure arises from a unique combination of product characteristics, and in turn it influences incentives, contractual relationships, and conduct associated with research efforts by organizations and individuals. We propose a conceptual framework that combines ongoing advances in the economics of internal organization with the familiar structure-conduct-performance paradigm. The observed workings of research markets, including responses to recent policy initiatives encouraging collaborative research efforts, are best understood in the context of this comprehensive framework.

Variations in the Effect of Uncertainty on Different Types of Investment: An Empirical Investigation

Several recent studies, including those by Pindyck (1991), Pindyck and Solimano (1993), Dixit and Pindyck (1994), Episcopos (1995), and Abel et al. (1996), suggest an important linkage between the effect of uncertainty on investment and the irreversibility of the latter. This paper broadly follows the foregoing tradition, but makes the point that it should be possible to distinguish between investments with different degrees of irreversibility and to relate the effect of uncertainty with the degree of investment irreversibility. A simple empirical illustration is provided by using pooled annual data for 12 OECD countries and estimating fixed-effects models for different types of investments. Although caution is appropriate in interpreting the estimates, the evidence suggests that the adverse effect of uncertainty is more severe on investments that have a greater degree of irreversibility.

Are all academic entrepreneurs created alike? Evidence from Germany

Using data from a large survey of German researchers in public science and based on a formal structure, this paper examines determinants of academic entrepreneurship. The key contribution is to discern factors driving research-driven entrepreneurship versus overall academic entrepreneurship. The extant literature has almost exclusively focused on the latter and implicitly assumed academic entrepreneurs to commercialize their research. Results show that, despite some plausible similarities in the determinants, there are significant differences. In particular, while both entrepreneurship categories benefit from greater patent applications, more time spent on consulting by the researcher and from participation in European conferences, research leaders and engineering science disciplines are more likely to lead to research-driven entrepreneurs. However, the positive influences of university employment (compared with being employed at a public research organization) on overall academic entrepreneurship fail to show up in research-driven entrepreneurship. One implication is that universities may be unduly patting themselves on the back – they might yield more entrepreneurs, but not necessarily research-driven entrepreneurs.