05197oam 22012134 450 991082855480332120240402051722.01-4623-9108-71-4527-0970-X1-282-84403-21-4518-7341-79786612844034(CKB)3170000000055344(SSID)ssj0000943013(PQKBManifestationID)11505578(PQKBTitleCode)TC0000943013(PQKBWorkID)10975129(PQKB)10040228(OCoLC)649468877(MiAaPQ)EBC1608817(IMF)WPIEE2009194(EXLCZ)99317000000005534420020129d2009 uf 0engurcn|||||||||txtccrPolitical Risk Aversion /Laura Valderrama1st ed.Washington, D.C. :International Monetary Fund,2009.26 p. illIMF Working PapersBibliographic Level Mode of Issuance: Monograph1-4519-1765-1 Includes bibliographical references.Cover Page -- Title Page -- Copyright Page -- Contents -- I. Introduction -- II. Basic Model -- A. Economic Environment -- B. Technology Choice -- C. Aggregate Uncertainty -- III. Institutional Reform -- A. Outside Ownership -- B. Endogenizing Ownership -- C. Dominated Employee Ownership -- IV. Efficieny, Innovation, and Labor Mobility -- A. Partnership Efficiency -- 1. Technological and Institutional Efficiency -- B. Institutional Efficiency -- 2. Endogeneous ownership -- V. Discussion -- A. How does the model fit the facts? -- B. Foundations of Individual Uncertainty -- C. Heterogeneous Investors -- VI. Related Literature -- VII. Concluding Remarks -- References -- Footnotes.This paper studies the effect of individual uncertainty on collective decision-making to implement innovation. We show how individual uncertainty creates a bias for the status quo even under irreversible voting decisions, in contrast with Fernandez and Rodrik (1991). Blocking innovation is rooted in the aversion to the potential loss of political clout in future voting decisions. Thus, risk neutral individuals exhibit what we call political risk aversion. Yet individual uncertainty is not all bad news as it may open the door to institutional reform. We endogenize institutional reform and show a non-monotonic relationship between institutional efficiency and the size of innovation.IMF Working Papers; Working Paper ;No. 2009/194UncertaintyRational expectations (Economic theory)LaborimfIndustries: Information TechnololgyimfProduction and Operations ManagementimfInventionsimfTechnological Change: Choices and ConsequencesimfDiffusion ProcessesimfInnovationimfResearch and DevelopmentimfTechnological ChangeimfIntellectual Property Rights: GeneralimfMacroeconomics: ProductionimfGeographic Labor MobilityimfImmigrant WorkersimfInformation technology industriesimfTechnologyimfgeneral issuesimfMacroeconomicsimfInventions & inventorsimfLabourimfincome economicsimfEmerging technologiesimfProductivityimfTechnological innovationimfLabor mobilityimfIndustrial productivityimfTechnological innovationsimfChina, People's Republic ofimfUncertainty.Rational expectations (Economic theory)LaborIndustries: Information TechnololgyProduction and Operations ManagementInventionsTechnological Change: Choices and ConsequencesDiffusion ProcessesInnovationResearch and DevelopmentTechnological ChangeIntellectual Property Rights: GeneralMacroeconomics: ProductionGeographic Labor MobilityImmigrant WorkersInformation technology industriesTechnologygeneral issuesMacroeconomicsInventions & inventorsLabourincome economicsEmerging technologiesProductivityTechnological innovationLabor mobilityIndustrial productivityTechnological innovations338.04;338.0409Valderrama Laura1597744International Monetary Fund.DcWaIMFBOOK9910828554803321Political Risk Aversion4117251UNINA