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Knowledge-based hierarchies: using organizations to understand the economy

Garicano, Luis and Rossi-Hansberg, Esteban (2014) Knowledge-based hierarchies: using organizations to understand the economy. CEP Occasional Papers, CEPOP43. The London School of Economics and Political Science, Center of Economic Performance, London, UK.

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Identification Number: CEPOP43

Abstract

We argue that incorporating the decision of how to organize the acquisition, use, and communication of knowledge into economic models is essential to understand a wide variety of economic phenomena. We survey the literature that has used knowledge-based hierarchies to study issues like the evolution of wage inequality, the growth and productivity of firms, economic development, the gains from international trade, as well as offshoring and the formation of international production teams, among many others. We also review the nascent empirical literature that has, so far, confirmed the importance of organizational decisions and many of its more salient implications.

Item Type: Monograph (Report)
Official URL: http://cep.lse.ac.uk/
Additional Information: © 2014 The Authors
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
Sets: Departments > Economics
Departments > Management
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 17 Dec 2014 10:06
Last Modified: 17 Dec 2014 10:06
Projects: Centre for Economic Performance Productivity and Innovation Programme
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/60532

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