TY  - JOUR
AU  - Kim,E. Han
AU  - Morse,Adair
AU  - Zingales,Luigi
TI  - Are Elite Universities Losing Their Competitive Edge?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12245
PY  - 2006
Y2  - May 2006
UR  - http://www.nber.org/papers/w12245
L1  - http://www.nber.org/papers/w12245.pdf
N1  - Author contact info:
E. Han Kim
University of Michigan
E-Mail: ehkim@umich.edu

Adair Morse
University of Chicago
Booth School of Business
5807 S Woodlawn Ave
Chicago, IL 60637
Tel: 773-834-1615
E-Mail: amorse@chicagobooth.edu

Luigi Zingales
Booth School of Business
The University of Chicago
5807 S. Woodlawn Avenue
Chicago, IL 60637
Tel: 773/702-3196
Fax: 773/834-2081
E-Mail: luigi.zingales@ChicagoBooth.edu
M2  - featured in NBER digest on 2006-05-22
AB  - We study the location-specific component in research productivity of economics and finance faculty who have ever been affiliated with the top 25 universities in the last three decades. We find that there was a positive effect of being affiliated with an elite university in the 1970s; this effect weakened in the 1980s and disappeared in the 1990s. We decompose this university fixed effect and find that its decline is due to the reduced importance of physical access to productive research colleagues. We also find that salaries increased the most where the estimated externality dropped the most, consistent with the hypothesis that the de-localization of this externality makes it more difficult for universities to appropriate any rent. Our results shed some light on the potential effects of the  internet revolution on knowledge-based industries.
ER  -