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Book
A Model of R&D Valuation and the Design of Research Incentives
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Year: 2003 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Business cycles in economics : types, challenges and impacts on monetary policies
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ISBN: 1633215385 Year: 2014 Publisher: New York : Nova Publishers,

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This anthology presents papers that challenge conventional viewpoints and ideas about business cycles and monetary policy. Some of the selections bring fresh thinking to customary topics, such as business cycle models in perfectly competitive markets, the cyclicality of research and development expenditures, and the effect of uncertainty shocks on consumer spending. Others address concerns that have come to the fore in the aftermath of the global financial crisis-the consequences of quantitative easing, the effectiveness of macro prudential policies, the impact of shadow banking on the fractio


Digital
A model of R&D valuation and the design of research incentives
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Year: 2003 Publisher: Cambridge, Mass. NBER

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The Fundamental Index : a better way to invest
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ISBN: 047027784X 1118045483 9786611374181 1281374180 0470294132 9780470294130 9781118045480 9780470277843 Year: 2008 Publisher: Hoboken, N.J. : John Wiley & Sons,

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2008 American Publishers Awards for Professional and Scholarly Excellence (The PROSE Awards) Finalist/Honorable mention, Business, Finance & Management. The Fundamental Index examines a new approach to indexing that can overcome the structural return drag created by traditional capitalization-based indexing strategies, and in so doing, enhance the performance of your portfolio. Throughout this book, Robert Arnott and his colleagues outline this breakthrough strategy and explain how it can be used to improve investment returns, typically at lower risk and lower cost than most conventio


Book
A Model of R&D Valuation and the Design of Research Incentives
Authors: --- ---
Year: 2003 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Abstract

We develop a real options model of R&D valuation, which takes into account the uncertainty in the quality of the research output, the time and cost to completion, and the market demand for the R&D output. The model is then applied to study the problem of pharmaceutical under-investment in R&D for vaccines to treat diseases affecting the developing regions of the world. To address this issue, world organizations and private foundations are willing to sponsor vaccine R&D, but there is no consensus on how to administer the sponsorship effectively. Different research incentive contracts are examined using our valuation model. Their effectiveness is measured in the following four dimensions: cost to the sponsor, the probability of development success, the consumer surplus generated and the expected cost per person successfully vaccinated. We find that, in general, purchase commitment plans (pull subsidies) are more effective than cost subsidy plans (push subsidies), while extending patent protection is completely ineffective. Specifically, we find that a hybrid subsidy constructed from a purchase commitment combined with a sponsor co-payment feature produces the best results in all four dimensions of the effectiveness measure.

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