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Knowledge-based hierarchies: using organizations to understand the economy

Garicano, Luis and Rossi-Hansberg, Esteban (2015) Knowledge-based hierarchies: using organizations to understand the economy. Annual Review of Economics, 7 (1). pp. 1-30. ISSN 1941-1383

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Identification Number: 10.1146/annurev-economics-080614-115748

Abstract

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 such as the evolution of wage inequality, the growth and productivity of firms, economic development, and the gains from international trade, as well as offshoring and the formation of international production teams. We also review the nascent empirical literature that has, so far, confirmed the importance of organizational decisions and many of their more salient implications.

Item Type: Article
Official URL: http://www.annualreviews.org/journal/economics
Additional Information: © 2015 by Annual Reviews
Divisions: Economics
Management
Centre for Economic Performance
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
JEL classification: D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production
Sets: Departments > Economics
Departments > Management
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 30 May 2017 14:11
Last Modified: 06 Jun 2017 09:24
URI: http://eprints.lse.ac.uk/id/eprint/79237

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