05231oam 22012254 450 991082855480332120200520144314.01-4623-9108-71-4527-0970-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(IMF)WPIEA2009194(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)Diffusion ProcessesimfEmerging technologiesimfGeneral issuesimfGeographic Labor MobilityimfImmigrant WorkersimfIncome economicsimfIndustrial productivityimfIndustries: Information TechnololgyimfInformation technology industriesimfInnovationimfIntellectual Property Rights: GeneralimfInventions & inventorsimfInventionsimfLabor mobilityimfLaborimfLabourimfMacroeconomicsimfMacroeconomics: ProductionimfProduction and Operations ManagementimfProductivityimfResearch and DevelopmentimfTechnological ChangeimfTechnological Change: Choices and ConsequencesimfTechnological innovationimfTechnological innovationsimfTechnologyimfChina, People's Republic ofimfUncertainty.Rational expectations (Economic theory)Diffusion ProcessesEmerging technologiesGeneral issuesGeographic Labor MobilityImmigrant WorkersIncome economicsIndustrial productivityIndustries: Information TechnololgyInformation technology industriesInnovationIntellectual Property Rights: GeneralInventions & inventorsInventionsLabor mobilityLaborLabourMacroeconomicsMacroeconomics: ProductionProduction and Operations ManagementProductivityResearch and DevelopmentTechnological ChangeTechnological Change: Choices and ConsequencesTechnological innovationTechnological innovationsTechnology338.04;338.0409Valderrama Laura1597744International Monetary Fund.DcWaIMFBOOK9910828554803321Political Risk Aversion4117251UNINA