Eitan Berglas School of Economics
Tel Aviv University
Tel Aviv 69978
Institutional Affiliations: Tel Aviv University and CEPR
Information about this author at RePEc
NBER Working Papers and Publications
|December 2019||More (or Less) Economic Limits of the Blockchain|
with Joshua S. Gans: w26534
This paper extends the blockchain sustainability framework of Budish (2018) to consider proof of stake (in addition to proof of work) consensus mechanisms and permissioned (where the number of nodes are fixed) networks. It is demonstrated that an economically sustainable network will involve the same cost regardless of whether it is proof of work or proof of stake although in the later the cost will take the form of illiquid financial resources. In addition, it is shown that regulating the number of nodes (as in a permissioned network) does not lead to additional cost savings that cannot otherwise be achieved via a setting of block rewards in a permissionless (i.e., free entry) network. This suggests that permissioned networks will not be able to economize on costs relative to permissionle...
|September 2017||Network-Mediated Knowledge Spillovers: A Cross-Country Comparative Analysis of Information Security Innovations|
with Lee Branstetter, Nadav Kuniesky: w23808
A large and growing literature has used patent and patent citation data to measure knowledge spillovers across inventions and organizations, but relatively few papers in this literature have explicitly considered the collaboration networks formed by inventors as a mechanism for shaping and transmitting these knowledge flows. This paper utilizes an approach developed by Fershtman and Gandal (2011) to examine the incidence and nature of knowledge flows mediated by the collaboration networks of inventors active in the information security industry. This is an industry in which a number of nations outside the United States, including Israel, have emerged as important centers of innovation. Using data from U.S. PTO patent grants in information security, we find that the quality of Israeli infor...