We develop a theory of control rights in the context of licensing interim innovative knowledge for further development, which is consistent with the inalienability of initial innovator's intellectual property rights (IPR). Control rights of a downstream development unit, a buyer of the interim...

We develop a model of two-stage cumulative research and development (R&D), in which one Research Unit (RU) with an innovative idea bargains to license her nonverifiable interim knowledge exclusively to one of two competing Development Units (DUs) via one of two alternative modes: an Open sale...

We consider a model of corporate …nance with imperfectly competitive fi…nancial intermediaries. Firms can fi…nance projects either via debt or via equity. Because of asymmetric information about fi…rm's growth opportunities, equity fi…nancing involves a dilution cost. Nevertheless, equity...

Why are some trade agreements concluded for a limited period of time while others have the form of evergreen contracts supplemented with an advance termination notice clause? We use a dynamic incomplete contracting model to demonstrate that the time structure of the trade agreement is related to...

In this paper we study convergence among Russian regions. We find that while there was no convergence in 1990s, the situation changed dramatically in 2000s. While interregional GDP per capita gaps still persist, the differentials in incomes and wages decreased substantially. We show that fiscal...

Unlike the textbook model of a top manager being an omniscient planner, coordinator and monitor, the real life managers suffer from discontinuity, lack of systematic information collection and limited time for analysis and re?ection. Why do not business leaders set up their organizations in the...

In the late 1980s, the vast majority of Russians supported pro-Western economic and political transformation. Although transition to market and democracy has eventually delivered economic benefits, most Russians are now skeptical about Western economic and political values. In this article we...

In a federation, local policies with inter-regional spillovers depend on the extent and the nature of local capture. Local lobbyists who have multi-regional scope internalize inter-jurisdictional externalities to a larger extent than the lobbyists with interests in a single region. In...

In an economy with weak economic and political institutions, the major institutional choices are made strategically by oligarchs and dictators. The conventional wisdom presumes that as rent-seeking is harmful for oligarchs themselves, institutions such as enforcement of the property rights will...

Despite the strong growth performance in transition countries in the last decade, residents of transition countries report abnormally low levels of life satisfaction. Using data from multiple sources including a recent survey in 28 post-communist countries, we study various explanations of this...