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Bombs, Brains, and Science: The Role of Human and Physical Capital for the Creation of Scientific Knowledge

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  • Waldinger, Fabian

    (University of Warwick)

Abstract

This paper analyzes the e¤ects of human capital (HC) and physical capital (PC) for the productivity of science departments. To address the endogeneity of input choices I use two extensive but temporary shocks to the HC and PC of science departments. As HC shock I use the dismissal of mostly Jewish scientists in Nazi Germany. As PC shock I use the destruction of facilities by Allied bombings during WWII. In the short run, a 10 percent to HC lowered departmental productivity by about 0.21sd. A 10 percent shock to PC lowered departmental productivity by about 0.05sd in the short run. While the HC shock persisted until the end of my sample period (1980), departments experiencing a PC shock recovered very quickly (by 1961). Additional results show that the dismissal ‘star scientists’was particularly detrimental, and that a fall in the quality of hires was an important mechanism for the persistence of the HC shock.

Suggested Citation

  • Waldinger, Fabian, 2012. "Bombs, Brains, and Science: The Role of Human and Physical Capital for the Creation of Scientific Knowledge," CAGE Online Working Paper Series 78, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:78
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    File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/78.2012_waldinger.pdf
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    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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