When workers are faced with the threat of unemployment, their relationship with a particular firm becomes valuable. As … market characterized by exogenous unemployment. However, stronger competition for labor does not impair labor market …

political pressure to reduce corruption if financial institutions are missing. Our model is based on the fact that corrupt … the rents from corruption. In a probabilistic voting model, we show that a lack of financial institutions can lead to more …-functioning financial institutions, in turn, can increase the political support for anti-corruption measures. …

institutions. …

powerful institutions to sanction free-riders. The idea of the mechanism is to require players to commit to the public good by …

substitute some functions of missing institutions, for example, enforcing contracts. We investigate this by setting up a model …