"They also have sources of friction
to address, such as those related to outdated regulation, excessive bureaucracy, and impediments to investment.
"High-income aspirants" -- such as Saudi Arabia, Kuwait, and Qatar -- have a high per capita GDP despite, rather than because of, the level of friction
in their digital economies.
Reducing Friction in the Internet Economy", serves as a follow-up to BCG's previous report, "The Connected World: Greasing the Wheels of the Internet Economy".
One of these is "high-income aspirants" and countries in this grouping - such as Qatar - have a high per capita GDP despite, rather than because of, the level of friction in their digital economies.
SMEs encounter a range of frictions that slow or prevent them from fully exploiting the Internet's potential.
Policy responses that fail to take into account how quickly technologies and the innovations they enable are evolving can cause more, rather than less, friction.
To take up the challenge presented by this crossroad of financial economics, my research project seeks to contribute to the knowledge of financial frictions and what to do about them.
Whereas economists have traditionally focused on the assumption of perfect markets, a growing body of evidence is leading to a widespread recognition that markets are plagued by significant financial frictions. FRICTIONS will model key financial frictions such as leverage constraints, margin requirements, transaction costs, liquidity risk, and short sale constraints.
Through the second channel, adjustment dynamics, expectations play a role in reducing the costs of economic frictions. Households, in maximizing their welfare, and firms, in maximizing their profits, face various frictions in pursuing their goals, such as costs associated with adjusting the rate of household purchases of durable goods or the rate of business investment in capital equipment.
The need for expectations in areas of decisionmaking other than asset valuation is determined by the strength of frictions or constraints on dynamic adjustments.
With those jobs, however, come new frictions
over the question of ownership and management.
In 2008, a literature review and analysis of rubber friction
research produced evidence for existence of this microhysteretic force.