WorldCat Identities

Jovanovic, Boyan 1951-

Works: 204 works in 809 publications in 1 language and 4,773 library holdings
Genres: History 
Roles: Author, Editor, Honoree
Classifications: HB1, 330
Publication Timeline
Most widely held works by Boyan Jovanovic
The IT revolution and the stock market by Jeremy Greenwood( Book )

19 editions published in 1999 in English and held by 121 WorldCat member libraries worldwide

A new technology or product is often developed by the single entrepreneur. Whether he reaches the public offering stage or is acquired by a listed firm it takes time for the innovator to add value to the stock market. Indeed first, reduce the market's value because some firms -- usually large or old -- will cling to old technologies that have lost their momentum. This paper argue that (a) the market declined in the late 1960s because it felt that the old technologies either had lost their momentum or would give way to IT, and that (b) IT innovators boosted the stock market's value only in the 1980s. If the stock market provides a forecast of future events, then the recent dramatic upswing represents a rosy estimate about growth in future profits for the economy. This translates into a forecast of higher output and productivity growth, holding other things equal (such as capital's share of income)
Vintage capital and inequality by Boyan Jovanovic( Book )

16 editions published in 1998 in English and held by 119 WorldCat member libraries worldwide

If machines are indivisible, a vintage capital model must give rise to income inequality. If new machines are always better than old ones and if society cannot provide everyone with a new machine all of the time, inequality will result. I explore this mechanism in detail. If technology resides in machines and if a firm or worker must use just one technology at a time, a variety of machines will be in use, and workers' productivities will differ. This is because not everyone can be given the latest vintage machine all of the time. Inequality thus originates in the limited capacity of the capital goods sector. If machine quality and skill are complements, a worker who is paired with the best machine will acquire more skill, and inequality persists indefinitely. Moreover, if the used equipment market or the process of labor turnover function without frictions, a perfect positive assignment between the quality of labor and of capital can be maintained by a process of continual reassignment. This serves to enhance the degree of equilibrium inequality. Paradoxically, in this type of model, free migration of labor across borders raises cross-country inequality instead of lowering it as it does in some other models
Stepping stone mobility by Boyan Jovanovic( Book )

15 editions published in 1996 in English and held by 116 WorldCat member libraries worldwide

People at the top of an occupational ladder earn more partly because they have spent time on lower rungs, where they have learned something. But what precisely do they learn? There are two contrasting views: First, the Bandit model assumes that people are different, that experience reveals their characteristics, and that consequently an occupational switch can result. Second, in our Stepping Stone model, experience raises a worker's productivity on a given task and the acquired skill can in part be transferred to other occupations, and this prompts movement. Safe activities (where mistakes destroy less output) are a natural training ground
Accounting for growth by Jeremy Greenwood( Book )

16 editions published between 1998 and 2000 in English and held by 114 WorldCat member libraries worldwide

A satisfactory account of the postwar growth experience of the United States should be able to come to terms with the following three facts: 1. Since the early 1970's there has been a slump in the advance of productivity. 2. The price of new equipment has fallen steadily over the postwar period. 3. Since the mid-1970's the skill premium has risen. Variants of Solow's (1960) vintage-capital model can go a long way toward explaining these facts, as this paper shows. In brief, the explanations are: 1. Productivity slowed down because the implementation of information technologies was both costly and slow. 2. Technological advance in the capital goods sector has lead to a decline in equipment prices. 3. The skill premium rose because the new, more efficient capital is complementary with skilled labor and/or because the use of skilled labor facilitates the adoption of new technologies
Research and productivity by Boyan Jovanovic( Book )

16 editions published between 1995 and 1996 in English and held by 114 WorldCat member libraries worldwide

Abstract: We model research as a signal on an unknown parameter of a technology. We distinguish applied from basic research and show that firms in the same industry can optimally choose different research portfolios, and that basic research can seem to have a higher rate of return than applied research, even though it really doesn't -- essentially, firms on a 'fast track' upgrading policy opt for basic research but fast and slow-track upgrading policies can coexist in a long-run equilibrium. We also derive the lag structure for how R & D affects the firm's stock of knowledge. To a first approximation, the lags decay geometrically (as is typically assumed in practice) but the rate of decay is endogenous, and depends on how fast the firm is upgrading its technology
Contracts and money by Boyan Jovanovic( Book )

15 editions published in 1996 in English and held by 114 WorldCat member libraries worldwide

We analyze the contractual relation between workers and their employers when there is nominal risk. The key feature of the problem is that the consumption deflator is random and observed sometime after the effort is exerted. The worker's effort is not observable, and to induce the agent to work, second-best contracts do not insure the worker fully. They do eliminate all nominal risk for the parties (by fully indexing the terms of the contracts to the price level) but they would be re-negotiated. Foreseeing this, the parties to the contract will write one that is renegotiation-proof. Under such a contract, nominal shocks affect real consumption. Since the argument should apply in many situations, it will have macroeconomic implications, one of which is short-run non-neutrality of money. We have found that surprise money is likely to redistribute consumption and welfare towards workers, and away from shareholders
Inequality by Jan Eeckhout( Book )

15 editions published between 1998 and 1999 in English and held by 112 WorldCat member libraries worldwide

Abstract: In a growth model, rent-grabbing and free riding can give rise to inequality in productivity and firm size. Inequality among firms affects a firm's incentive to free ride or to grab rents, and, hence, the incentive to invest in research and training We follow Lucas and Prescott (1971) and Hayashi (1982) and assume constant returns in production and in adjustment costs for investment, and perfect capital markets. Our conclusion, however, differs starkly from theirs: Average Tobin's q generally exceeds marginal q. That is, the unit value of capital is lower in big firms, and evidence dating back to Fazzari, Hubbard, and Petersen (1988) supports this claim quite decisively. Such evidence is usually taken to imply that small firms invest at a rate lower than its perfect capital market rate. In our model, however, it arises because small firms rely more on copying than big firms do: The marginal product of capital is equal across firms, but its average product is higher than that because small firms get a disproportionately high external benefit
The transfer of human capital by Boyan Jovanovic( Book )

16 editions published between 1994 and 1995 in English and held by 111 WorldCat member libraries worldwide

Most of our productive knowledge was handed down to us by previous generations. The transfer of knowledge from the old to the young is therefore a cornerstone of productivity growth. We study this process in a model in which the old sell knowledge to the young - - old workers train the young, and charge them for this service. We take an information-theoretic approach in which training occurs if a young agent watches an old worker perform a task. This assumption has plenty of empirical support -- in their first three months on the job, young workers spend about five times as long watching others work as they do in formal training programs. Equilibrium is not constrained Pareto optimal. The old have private information, and this gives rise to an adverse selection problem: some old agents manage to sell skills that the young would not buy (if only they knew exactly what they were buying). We derive the implications for the lifetime of technological lines, and we show that the model generates a negative relation between a firm's productivity and its probability of failure
The information technology revolution and the stock market : evidence by Bart Hobijn( )

17 editions published in 2000 in English and held by 109 WorldCat member libraries worldwide

Since 1968, the ratio of stock market capitalization to GDP has varied by a factor of 5. In 1972, the ratio stood at above unity, but by 1974, it had fallen to 0.45 where it stayed for the next decade. It then began a steady climb, and today it stands above 2. We argue that the IT revolution was behind this and, moreover, that the capitalization/GDP ratio is likely to decline and then rise after any major technological shift. The three assumptions that deliver the result are: 1. The IT revolution was anticipated by early 1973, 2. IT was resisted by incumbents, which led their value to fall, and 3. Takeovers are an imperfect policing device that allowed many firms to remain inefficient until the mid-1980's. We lay out some facts that the IT hypothesis explains, but that some alternative hypotheses -- oil-price shocks, increased market volatility, and bubbles -- do not
Learning, complementarities and asynchronous use of technology by Boyan Jovanovic( )

16 editions published in 1997 in English and held by 108 WorldCat member libraries worldwide

This paper deals with processes that require several complementary inputs subject to improvements in quality. If after a quality upgrade one of these inputs requires a period of learning before it can be used effectively, then in general it will pay to purchase the inputs at different dates -- the purchases will be asynchronous. That is so because it is wasteful to tie up funds in the other inputs which will be underutilized until the date learning is over. We provide evidence that technology has been used asynchronously in the automobile industry, in the television broadcasting industry, in electricity supply, and in railways, and we argue that our model helps explain this evidence
Solow vs. Solow : machine prices and development by Boyan Jovanovic( Book )

15 editions published between 1996 and 1997 in English and held by 107 WorldCat member libraries worldwide

Machines are more expensive in poor countries, and the relation is pronounced. It is hard for a Solow (1956) type of model to explain the relation between machine prices and GDP given that in most countries equipment investment is under 10% of GDP. A stronger relation emerges in a Solow (1959) type of vintage model in which technology is embodied in machines
Liquidity effects in the bond market by Boyan Jovanovic( )

14 editions published in 2001 in English and held by 103 WorldCat member libraries worldwide

Our paper reports the following two findings: 1) In monthly data, bond purchases by the Fed raise bond prices and reduce bond yields. The residual bond-supply to traders is not fully predictable, and this supply-risk adds between 10 and 40 basis points to the standard deviation of the real interest rate on T-bills. 2) The Fed's open market purchases do not raise stock prices or reduce stock returns. If anything, they raise stock returns. More generally, bonds and stocks do not co-move at high frequencies. To explain these two facts, we model the bond and stock markets as spatially separate or 'segmented'. In the model, bond purchases lower bond rates, but they do not affect stock returns, and this is consistent with both facts
Growth theory by Boyan Jovanovic( Book )

13 editions published between 1999 and 2000 in English and held by 102 WorldCat member libraries worldwide

Growth theory offers two plausible explanations of growth. One stresses the supply of productive ideas and holds that the industrial revolution had to wait until we had thought up enough inventions to lift us into the era of modern growth. It says, roughly, that the growth of living standards depends on the growth of science. The other explanation stresses incentives: Growth could begin only when hard work and business enterprise were free of heavy taxation, of social stigma and of other interference by the government and the church. The first branch of theory is well developed; it is the second that now challenges the growth economist to explain not just growth, but the evolution of political and religious institutions and social attitudes as well
Vintage organization capital by Boyan Jovanovic( )

14 editions published in 2001 in English and held by 101 WorldCat member libraries worldwide

We study 114 years of U.S. stock market data and find That there are large cohort effects in stock prices, effects that we label 'organization capital, ' That cohort effects grew at a rate of 1.75% per year, That the debt-equity ratio of all vintages declined, That three big technological waves took place: electricity (1895-1930), a 'World War II' wave (1945-1970), and information technology (1971- ), and That organization capital tends to grow fastest during the second half of a technological wave
Bidder discounts and target premia in takeovers by Boyan Jovanovic( )

15 editions published in 2002 in English and held by 100 WorldCat member libraries worldwide

When a takeover is announced, the sum of the stock-market values of the firms involved often falls, and the value of the acquirer almost always does. Does this mean that takeovers do not raise the values of the firms involved? Not necessarily. We set up a model in which the equilibrium number of takeovers is constrained efficient. Yet, upon news of a takeover, a target's price rises, the bidder's price falls, and, most of the time the joint value of the target and acquirer also falls
Why wait : a century of life before IPO by Boyan Jovanovic( )

16 editions published between 2000 and 2001 in English and held by 100 WorldCat member libraries worldwide

Firms that entered the stock market in the 1990s were younger than any earlier cohort since World War I. Surprisingly, however, firms that IPO'd at the close of the 19th century were just as young as the companies that are entering today. We argue here that the electrification-era and the IT-era firms came in young because the technologies that they brought in were too productive to be kept out very long. The model assumes that the stage before IPO is a learning period during which the firm refines the idea before committing to it at the IPO stage. The better the idea, the higher is the opportunity cost of a delay in its implementation, and the earlier the firm will have its IPO
Moore's law and learning-by-doing by Boyan Jovanovic( )

14 editions published in 2002 in English and held by 99 WorldCat member libraries worldwide

We model Moore's Law as efficiency of computer producers that rises as a by-product of their experience. We find that (1) Because computer prices fall much faster than the prices of electricity-driven and diesel-driven capital ever did, growth in the coming decades should be very fast, and that (2) The obsolescence of firms today occurs faster than before, partly because the physical capital they own becomes obsolete faster
The Q-theory of mergers by Boyan Jovanovic( )

13 editions published in 2002 in English and held by 99 WorldCat member libraries worldwide

The Q-theory of investment says that a firm's investment rate should rise with its Q. We argue here that this theory also explains why some firms buy other firms. We find that 1. A firm's merger and acquisition (M&A) investment responds to its Q more -- by a factor of 2.6 -- than its direct investment does, probably because M&A investment is a high fixed cost and a low marginal adjustment cost activity, 2. The typical firm wastes some cash on M&As, but not on internal investment, i.e., the 'Free-Cash Flow' story works, but explains a small fraction of mergers only, and 3. The merger waves of 1900 and the 1920's, `80s, and `90s were a response to profitable reallocation opportunities, but the `60s wave was probably caused by something else
Learning and growth by Boyan Jovanovic( )

12 editions published in 1995 in English and held by 98 WorldCat member libraries worldwide

In this survey, I discuss four sources of growth of knowledge: research, schooling, learning by doing, and training. In trying to disentangle what is important, I emphasize the following facts: (1) even the most advanced countries spend far more on adoption of existing technologies than on inventing new ones, and (2) countries frequently adopt 'dominated' technologies. These facts provide a useful background for evaluating the different theories. They will also sharpen the point that it is important to distinguish between technology and human capital. The conclusion is simply this: In generating world growth, the world's research outlays are an essential ingredient. But for most agents the decision determining growth is one of whether to adopt existing technologies. We have perhaps underemphasized this in our modeling so far. Moreover, the handful of models that I survey contains a bewildering array of diverse engines of growth, most of which are not based on any firm evidence
Mergers as reallocation by Boyan Jovanovic( )

12 editions published between 2002 and 2003 in English and held by 98 WorldCat member libraries worldwide

Abstract: We argue that takeovers have played a major role in speeding up the diffusion of new technology. The role that they play is similar to that of entry and exit of firms. We focus on and compare two periods: 1890-1930 during which electricity and the internal combustion engine spread through the U.S. economy, and 1971-2001 . the Information Age
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Audience level: 0.69 (from 0.68 for Growth the ... to 0.71 for Vintage ca ...)

Associated Subjects
Banks and banking--Location Bond market Bonds--Valuation--Mathematical models Capital investments Capital investments--Econometric models Capital investments--Mathematical models Capital stock Computer industry Consolidation and merger of corporations Consolidation and merger of corporations--Econometric models Consolidation and merger of corporations--Economic aspects Consolidation and merger of corporations--Mathematical models Contracts--Mathematical models Corporations--Finance Corporations--Valuation Economic development Economic forecasting--Econometric models Economic history Economics Employees--Training of Going public (Securities) Government securities Human capital Human capital--Econometric models Human capital--Mathematical models Income distribution--Econometric models Indexation (Economics)--Mathematical models Industrial efficiency Industrial productivity--Econometric models Industrial productivity--Effect of technological innovations on--Econometric models Industrial revolution Industries--Size--Econometric models Information technology--Economic aspects Interest rates Learning--Econometric models Learning--Mathematical models Liquidity (Economics) Management Occupational mobility--Econometric models Production management Research Risk management Skilled labor--Econometric models Stock price forecasting Stock price forecasting--Econometric models Stocks--Prices Technological innovations--Econometric models Technological innovations--Economic aspects--Econometric models Technological innovations--Mathematical models United States
Alternative Names
Boyan Jovanovic eacnamaí Seirbiach

Boyan Jovanovic economista serbio

Boyan Jovanovic économiste serbe

Boyan Jovanovic econoom uit Servië

Boyan Jovanovic Serbian economist

Boyan Jovanovic serbischer Ökonom und Professor an der New York University

Йованович, Боян

English (299)