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.

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.

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More and More CEOs Are Taking Their Social Responsibility Seriously

Harvard Business Review

The Ford story doesn’t add up , if you assume that Ford believed that his move alone was enough to raise overall demand for cars. But if you think instead that he was signaling to his competitors that if they all moved none of them would be at a disadvantage and that aggregate demand for the industry would increase, then the principle arguably holds in other contexts for some of today’s giants. Ryan McVay/Getty Images.

The Question with AI Isn’t Whether We’ll Lose Our Jobs — It’s How Much We’ll Get Paid

Harvard Business Review

It is the continuous obligation of economic policy to match increases in productive potential with increases in purchasing power and demand. Anticipating future skill needs and demands adds to the urgency of addressing the many challenges in K-12 and higher education, including achievement and opportunity gaps by race and socioeconomic status in K-12 schooling, and improving access, affordability, and success in post-secondary education. anucha sirivisansuwan/Getty Images.

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.