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Many platform strategies focus on indirect network effects between sellers through platform expansion. In this paper, we show sellers on the console video game platform generate a positive intertemporal spillover effect and expand the demand for other sellers, holding the set of platform adopters fixed. We propose a novel identification strategy that leverages exogenous variation in the release timing of games exclusively available on a console platform, and examine how this variation affects the sales of games available on both platforms. We find a sizable intertemporal demand spillover effect between games: A 1% increase in total copies sold on a platform leads to a 0.153% increase in the sales of other games in the next month (i.e., an elasticity of 0.153). Additional analysis suggests this demand spillover effect is reminiscent of habit formation on the consumer side, in that past purchases keep end users active on the platform. Our finding provides a potential explanation for recent platform sales events and subscription services that provide free games to consumers every month. This paper was accepted by Eric Anderson, marketing .

Social media platform owners often choose to provide tighter integration with their own complementary applications (i.e., first-party applications) as compared to that with other complementary third-party applications. We study the impact of such integration on consumer demand for first-party applications and competing third-party applications by exploring Facebook’s integration of Instagram, an application in its photo-sharing application ecosystem. We find that consumers obtain additional value from Instagram after its integration with Facebook, leading to a large increase in the use of Instagram for Facebook photo sharing. Further, we find that the growth of Instagram’s user base has a positive spillover effect on big third-party applications and a negative spillover effect on small third-party applications in Facebook’s photo-sharing ecosystem. As a result, while small third-party applications face reduced demand after integration, big third-party applications experience a small increase in demand. Thus, the overall demand for the entire photo-sharing application ecosystem actually increases, which suggests that Facebook’s integration strategy benefits the complementary market overall. Our results highlight the role of platform integration for first-party applications and the application ecosystem overall, and they have implications for strategic management of first-party applications in the presence of third-party applications. This paper was accepted by Anandhi Bharadwaj, information systems .

Carbon dioxide (CO₂) emissions are largely driven by fossil fuels. To reduce CO₂ emissions in China, it is important to determine influential factors of energy efficiency. This paper introduces a slacks-based measure window analysis approach to evaluate regional dynamic energy efficiency during 2001–2010, and then explores energy efficiency determinants by considering spatial effects, which is conducted based on spatial econometric models. The empirical results show that there exist evident spatial correlations between regional energy efficiencies in China. We find that, there exist evident disparities in cumulative effects of energy efficiency among the eastern, central and western areas. Interestingly, significant energy efficiency spatial spillovers can be clearly found between regions within the western area and across the eastern and western areas. It is found that, energy structure, energy price, railway transportation development and R&D stock are significant at national level. However, energy structure and railway transportation development are insignificant in the central and western areas, while energy price and R&D stock are insignificant in the eastern and central areas, respectively. Industrial structure and urbanization level are found to be insignificant at national level, but industrial structure is significant in the eastern and western areas, and urbanization level is significant in the central and western areas. Surprisingly, industrial structure and urbanization level are found to have positive impacts on energy efficiency in the western area. In addition to regional disparities and local conditions, policies making should take efficiency spatial spillovers into consideration. Several interesting policy implications are achieved.

Using data on green patents filed at the European Patent Office from 1980 to 1984, this paper investigates the effect of increasing government R&D budget on green technology spillovers. Spillovers are measured with patent forward citations over the period 1981–1988. The level of government R&D budget is instrumented leveraging the unexpected occurrence of the Chernobyl nuclear accident—that exogenously pushed governments to reduce their energy-related R&D budgets—in a difference in differences setting. 2SLS results show that a 10% increase in government R&D increases by some 0.7% the number of citations received by green patents. Although positive and significant, the small magnitude of the estimated elasticity suggests that government R&D takes time to let innovation spillovers from green technologies to materialize with some relevance. Interestingly, increasing government R&D expenditures fosters green technology spillovers across traditional (non-green) fields and enlarges the technological breadth of inventions citing green patents. Overall, I conclude that government R&D fosters green knowledge spillovers, accelerates hybridization processes and favors technological diversification around green technologies. However, these positive effects seem to materialize at a slow pace.

We conduct a disaggregated empirical analysis of civil conflict at the subnational level in Africa over 1997 to 2011 using a new gridded data set. We construct an original measure of agriculture-relevant weather shocks exploiting within-year variation in weather and in crop growing season and spatial variation in crop cover. Temporal and spatial spillovers in conflict are addressed through spatial econometric techniques. Negative shocks occurring during the growing season of local crops affect conflict incidence persistently, and local conflict spills over to neighboring cells. We use our estimates to trace the dynamic response to shocks and predict how future warming may affect violence.

Purpose This study aims to examine the spillover effects of the mean and volatility between oil prices and stock indices of six Gulf Cooperation Council (GCC) countries (UAE, Kuwait, Saudi Arabia, Qatar, Oman and Bahrain). Design/methodology/approach Over the period 2008–2019, a bivariate VARMA-GARCH-ADCC model was combined with the maximal overlap discrete wavelet transform technique filter to shed light on a wide range of possible spillover effects in the mean and variances of level prices at various time horizons. Findings The authors find that the spillover effects between oil prices and the GCC stock markets are time-varying and spread across various time horizons. Besides, oil prices and stock market indices are directly impacted by their own shocks and variations and indirectly influenced by other price volatilities and wavelet scales. The linkages in volatility spillovers between oil prices and the GCC stock markets occur in the short-term, midterm and long-term horizons. More specifically, the results also show that the asymmetric estimates are statistically significant for the associations between oil prices and each stock market in the GCC countries. This implies that negative shocks play a more vital role than positive shocks in driving the dynamic condition correlations between oil and stock markets under study. Practical implications The significant interrelatedness between oil prices and each stock market in the GCC countries has important implications for investors, portfolio managers, and other market participants. They can use the findings of this research to create the best oil-GCC stock portfolios and predict more precisely the volatility spillover patterns in constructing their hedging strategies. Originality/value In several ways, this study differs from previous research. First, while previous empirical studies of the dynamic link between oil prices and stock markets have focused primarily on developed or emerging markets, the focus of this is on six GCC countries. Second, the linkage between oil prices and stock markets is typically studied at the original data level in the time domain in relevant literature, while frequency information is overlooked. Therefore, the current study examines this relationship from a multiscale perspective. Third, in this paper, to capture a wide range of possible spillover effects in the mean and variance of level prices at multiple wavelet scales, the authors use a VARMA-GARCH-ADCC model in conjunction with wavelet multiresolution analysis. Additionally, this article also applies wavelet hedge ratio and wavelet hedge portfolio analysis at various time horizons.

Lending cuts by banks directly affect the firms borrowing from them, but also indirectly depress economic activity in the regions in which they operate. This paper moves beyond firm-level studies by estimating the effects of an exogenous lending cut by a large German bank on firms and counties. I construct an instrument for regional exposure to the lending cut based on a historic, postwar breakup of the bank. I present evidence that the lending cut affected firms independently of their banking relationships, through lower aggregate demand and agglomeration spillovers in counties exposed to the lending cut. Output and employment remained persistently low even after bank lending had normalized. Innovation and productivity fell, consistent with the persistent effects.

In recent years, researchers have increasingly studied the interaction between the crude oil market and economic policy uncertainty (EPU). To have a deeper knowledge, this article examines the spillover effects between them from a multiscale perspective with a wavelet-based BEKK-GARCH method. The results show that the spillover effects between the Brent crude oil market and EPU in the BRIC countries are time-varying across different wavelet scales in terms of direction and strength. The mean spillover relationship between oil prices and EPU is weak in the short term but gradually strengthened toward the long term. Moreover, there are strong volatility spillover effects between oil prices and EPU in Brazil and Russia in the short and medium term.

The COVID-19 outbreak significantly affected the global economy and energy markets. To mitigate the shock, maintain financial market stability, and encourage economic recovery, this study investigates the influence of post-COVID-19 on monetary policy transmission to business practices and financial market indicators for green economic recovery. We utilised 37 Asian markets’ panel data from 1 January 2020, through 30 December 2020. The empirical findings demonstrate that the pandemic’s emergence impeded monetary policy transmission, business practices, and financial markets. Our empirical contribution is to examine the size, sectoral allocation, and implementation options of three leading countries’ (China, Japan, and Thailand) green recovery spending plans, which range significantly. However, this effect mainly affects the medium-and-long-term effects, and short-term spillover effects are primarily unaffected by Asian monetary policy uncertainty. Our findings have significant implications for green economic recovery among market players and regulators in the Asian market.

We show that venture capitalists' (VCs) on-site involvement with their portfolio companies leads to an increase in both innovation and the likelihood of a successful exit. We rule out selection effects by exploiting an exogenous source of variation in VC involvement: the introduction of new airline routes that reduce VCs' travel times to their existing portfolio companies. We confirm the importance of this channel by conducting a large-scale survey of VCs, of whom almost 90% indicate that direct flights increase their interaction with their portfolio companies and management, and help them better understand companies' activities.