In academia, the term ''inbreeding'' refers to a situation wherein PhDs are employed in the very same institution that trained them during their doctoral studies. Academic inbreeding has a negative perception on the account that it damages both scientific effectiveness and productivity. In this article, the effect of inbreeding on scientific effectiveness is investigated through a case study. This problem is addressed by utilizing Hirsch index as a reliable metric of an academic's scientific productivity. Utilizing the dataset, constructed with academic performance indicators of individuals from the Mechanical and Aeronautical Engineering Departments, of the Turkish Technical Universities, we demonstrate that academic inbreeding has a negative impact on apparent scientific effectiveness through a negative binomial model. This model appears to be the most suitable one for the dataset which is a type of count data. We report chi-square statistics and likelihood ratio test for the parameter alpha. According to the chi-square statistics the model is significant as a whole. The incidence rate ratio for the variable ''inbreeding'' is estimated to be 0.11 and this ratio tells that, holding all the other factors constant, for the inbred faculty, the h-index is about 89% lower when compared to the noninbred faculty. Furthermore, there exists negative and statistically significant correlation with an individual's productivity and the percentage of inbred faculty members at the very same department. Excessive practice of inbreeding adversely affects the overall productivity. Decision makers are urged to limit this practice to a minimum in order to foster a vibrant research environment. Furthermore, it is also found that scientific productivity of an individual decreases towards the end of his scientific career.
The full impact of trade costs in segmenting product markets cannot be captured by considering aggregate prices or in the absence of information on the direction of trade. We address this problem by utilizing product‐specific prices, cross‐sectional productivity indices, and bilateral trade flows, allowing us to identify the probable source of any one product. We show that trade costs in the form of transportation and distribution costs are important in determining international price differences and segmenting international markets. Physical distance relative to the origin has a precisely estimated positive impact on international deviations from the Law‐of‐One‐Price that is larger than estimates that do not account for the origin of each product. Based on our benchmark estimates, the price elasticity of distance was around 10% in 1990. (JEL F4)
The importance of trade costs in segmenting product markets cannot be captured by considering aggregate prices or in the absence of information on the direction of trade. We address this problem by utilizing product-specific prices along with cross-sectional productivity measures and bilateral trade flows that allow us to identify the probable source of any one product. Our empirical approach is in line with the theoretical framework of Eaton and Kortum (2002) and the variation of this proposed in Anderson and van Wincoop (2004). The data are shown to be consistent with this framework. In particular, trade costs in the form of transportation and distribution costs are important in determining international price differences and segmenting international markets.
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