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When Does Coordination Require Centralization?

Alonso, Ricardo; Dessein, Wouter; Matouschek, Niko - C.E.P.R. Discussion Papers - 2006

This paper compares centralized and decentralized coordination when managers are privately informed and communicate strategically. We consider a multi-divisional organization in which decisions must be responsive to local conditions but also coordinated with each other. Information about local...

Persistent link: https://www.econbiz.de/10005124372

Optimal Delegation

Alonso, Ricardo; Matouschek, Niko - C.E.P.R. Discussion Papers - 2005

We analyse the optimal delegation of decision rights by a uninformed principal to an informed but biased agent. When the principal cannot use message-contingent transfers, she offers the agent a set of decisions from which he can choose his preferred one. We fully characterize the optimal...

Persistent link: https://www.econbiz.de/10005497908

Externalities, Communication and the Allocation of Decision Rights

Bester, Helmut - C.E.P.R. Discussion Papers - 2005

This paper views authority as the right to undertake decisions that impose externalities on other members of the organization. When only decision rights can be contractually assigned to one of the organization's stakeholders, the optimal assignment minimizes the resulting inefficiencies by...

Persistent link: https://www.econbiz.de/10005114267

A Price Theory of Vertical and Lateral Integration (Revised Version)

Legros, Patrick; Newman, Andrew - C.E.P.R. Discussion Papers - 2012

We present a perfectly-competitive model of firm boundary decisions and study their interplay with product demand, technology, and welfare. Integration is pri- vately costly but is effective at coordinating production decisions; non-integration is less costly, but coordinates relatively poorly....

Persistent link: https://www.econbiz.de/10011083920

Externalities and the Allocation of Decision Rights in the Theory of the Firm

Bester, Helmut - C.E.P.R. Discussion Papers - 2002

This Paper views authority as the right to undertake decisions that have external effects on other members of the organization. Because of contractual incompleteness, monetary incentives are insufficient to internalize these effects in the decision-maker’s objective. The optimal assignment of...

Persistent link: https://www.econbiz.de/10005661581

A Price Theory of Vertical and Lateral Integration

Legros, Patrick; Newman, Andrew - C.E.P.R. Discussion Papers - 2009

We construct a price-theoretic model of firms' integration decisions under perfect competition and study their interplay with consumer demand and welfare. Integration is costly to implement but is effective at coordinating production decisions. The price of output influences the ownership...

Persistent link: https://www.econbiz.de/10005661865

How Transparent are Central Banks?

Eijffinger, Sylvester C W; Geraats, Petra M - C.E.P.R. Discussion Papers - 2002

Central bank transparency has become the topic of a lively public and academic debate on monetary policy. Unfortunately, it has been complicated by the fact that transparency is a qualitative concept that is hard to measure. This Paper proposes a comprehensive index for central bank transparency...

Persistent link: https://www.econbiz.de/10005123819

The Economics of Secession – Analysing the economic impact of the collapse of the former Yugoslavia

Rodriguez-Pose, Andres; Stermsek, Marko - C.E.P.R. Discussion Papers - 2014

independence process, socioeconomic and structural controls, and the level of development – in order to assess whether a) breaking … away from the former Yugoslavia delivered an ‘independence dividend’ to the newly independent countries and whether b …) independence had a more favourable impact in richer, rather than poorer territories. The results of the analysis underline that …

Persistent link: https://www.econbiz.de/10011083216

Central Banks: Powerful, Political and Unaccountable?

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2014

Central banks’ economic and political importance has grown in advanced economies since the start of the Great Financial Crisis in 2007. An unwillingness or inability of governments to use countercyclical fiscal policy has made monetary policy the only stabilization tool in town. However, much...

Persistent link: https://www.econbiz.de/10011084413

Regions are not countries: a new approach to the border effect

Comerford, David; Mora, Rodríguez; Vicente, José - C.E.P.R. Discussion Papers - 2014

between sub-national states or regions. Using plausible counterfactual analysis, we assess the costs of independence for … Scotland, Catalonia, & the Basque Country: the intellectual experiment that is performed is to suppose that the region on … independence takes on the calibrated frictions of a counterfactual independent country. If the main change that comes with the …

Persistent link: https://www.econbiz.de/10011084503