The Law of One Price and a Theory of the Firm
I use a hierarchical perspective to explain the pattern of interindustry wages and capital intensities. Industries that have more productive technologies pay more than less-productive ones, and are more capital intensive as well. Results on size of the hierarchy, effort levels, and span of control are presented as well. The key insight is that supervisors both monitor and coordinate their subordinates, and time spent on one of these activities reduces the time available for the other. Several stylized facts are explained thereby.
Year of publication: |
1998
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Authors: | Mehta, Shailendra Raj |
Published in: |
RAND Journal of Economics. - The RAND Corporation, ISSN 0741-6261. - Vol. 29.1998, 1, p. 137-156
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Publisher: |
The RAND Corporation |
Saved in:
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