The More Climate Skeptics There Are, the Fewer Climate Entrepreneurs

Harvard Business Review

A drug company must incur a large fixed cost to do the basic research, so it has strong incentives to predict what the demand for the drug will be if its research succeeds. The higher the market demand for a drug, the greater the probability that at least one drug maker conducts basic research. In our model, a rational agent demands climate-adaptation products in order to increase the chance that they survive to enjoy future consumption.

What the U.S. Economy Needs More Than Manufacturing

Harvard Business Review

The idea is important because we need demand in this economy in order to create jobs. Domestic demand is being constrained because our government is trying to get its fiscal house in order. Demand is deficient and you need a strategy to fix that. But a jobs strategy has to be based on aggregate demand throughout the economy. An edited interview with Robert Z. Lawrence , the Albert L.

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The Economic Impact of the Japanese Disasters

Harvard Business Review

Transportation disruptions and the closing of many factories throughout Japan will shrink Japanese aggregate demand and disrupt supply chains worldwide. Human suffering is certainly our main concern in the immediate aftermath of Japan's 3/11 tragedy. But even as we focus on immediate human needs, we cannot avoid recognizing — and coping with — the long economic shadow cast by this disaster. The direct impact on real economic activity worldwide is already being felt.