Paul Kedrosky's Infectious Greed

Declining Telecom Costs Worldwide
Field Notes: Food, Vancouver, Ira Sohn, Death, Crowds, Chess, etc.
Creative Destruction: Up and to the Right

Declining Telecom Costs Worldwide

Posted: 17 May 2011 03:48 PM PDT

via economist.com

Field Notes: Food, Vancouver, Ira Sohn, Death, Crowds, Chess, etc.

Posted: 17 May 2011 03:43 PM PDT

Vancouver industrial property prices up 20-fold in six years (Source)
Ira Sohn conference contest (Source)
Death Derivatives Emerge From Longevity Risks(Source)
How social influence can undermine the wisdom of crowd effect (Source)
Mystery life everyday (Source)
Commodity Prices and Paradigm Shifts (Source)
Bobby Fischer: from prodigy to pariah | Sport | The Observer (Source)
Food Like You’ve Never Seen Before (Source)
Microsoft’s Bill Gates says he advocated Skype takeover (Source)
China's sugar rush may be ending (Source)
The trouble with Bitcoin (Source)

Creative Destruction: Up and to the Right

Posted: 17 May 2011 03:14 PM PDT

Interesting new paper argues that the pace of creative destruction in the U.S. economy has accelerated and changed in last few decades:

Creative Destruction and Finance: Evidence from the Last Half Century

Abstract:

The rate of creative destruction among public firms increases in the U.S. during the period 1960-2009. We document statistically significant increases in big business turnover, changes in market share, the difference in growth rates between firms that gain and lose market share, and other measures that show an increasingly dynamic economy. The increase in economic dynamism is driven by increasingly fast-growing firms that exhibit increasingly high growths in total factor productivity, value-added, and profit margins, and have increasingly high R&D spending and patent grants. The type of firm that generates this creative destruction changes during the sample period. Creators are increasingly smaller and younger, and increasingly issue shares and debt; the average creator would have run out of cash by year-end had it not raised capital, and this financial dependence increases throughout the sample period.