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The Hold-Down Problem and the Boundaries of the Firm: Lessons from a Hidden Action Model with Endogenous Outside Option
Schnedler, Wendelin; Sunde, Uwe - Institute for the Study of Labor (IZA) - 2002
This paper offers a rationale for limiting the delegation of (real) authority, which neither relies on insurance arguments nor depends on ownership structure. We analyse a repeated hidden action model in which the actions of a risk neutral agent determine his future outside option. Consequently,...
Persistent link: https://www.econbiz.de/10005703716
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Political Preferences and Public Sector Outsourcing
Elinder, Mikael; Jordahl, Henrik - Institute for the Study of Labor (IZA) - 2012
, it is somewhat surprising that many social scientists have preferred to explain government outsourcing by the pursuit of … economic efficiency. Starting out from different theories, we investigate political explanations of government outsourcing … using a Swedish data set in which outsourcing varies between municipalities and over time, as well as between services. Our …
Persistent link: https://www.econbiz.de/10010695872
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Fiscal Decentralization and Development: How Crucial is Local Politics?
Pal, Sarmistha; Roy, Jaideep - Institute for the Study of Labor (IZA) - 2010
Does fiscal decentralization in a politically decentralized less developed country help strengthen democratic … institutions at the grass root level? And is the impact of such decentralization on local politics important in determining local … development? Our study on Indonesia suggests that fiscal decentralization enhanced free and fair local elections, though the …
Persistent link: https://www.econbiz.de/10008683656
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How Large Is the Private Sector in Africa? Evidence from National Accounts and Labor Markets
Stampini, Marco; Leung, Ron; Diarra, Setou M.; Pla, … - Institute for the Study of Labor (IZA) - 2011
In recent years, the private sector has been recognized as a key engine of Africa's economic development. Yet, the most simple and fundamental question remains unanswered: how large is the African private sector? We present novel estimates of the size of the private sector in 50 African...
Persistent link: https://www.econbiz.de/10009416934
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Diversity and Public Goods: A Natural Experiment with Exogenous Residential Allocation
Algan, Yann; Hémet, Camille; Laitin, David D. - Institute for the Study of Labor (IZA) - 2011
This paper demonstrates the effects of ethnic and religious diversity on the quality of public spaces. Its identification strategy relies on the exogeneity of public housing allocations in France, and thereby eliminates the bias from endogenous sorting. The paper uses micro evidence of social...
Persistent link: https://www.econbiz.de/10009353428
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Tacit Lobbying Agreements: An Experimental Study
Großer, Jens; Reuben, Ernesto; Tymula, Agnieszka - Institute for the Study of Labor (IZA) - 2010
We experimentally study the common wisdom that money buys political influence. In the game, one lobbyist has the opportunity to influence redistributive tax policies in her favor by transferring money to two competing candidates. The success of the lobbying investment depends on whether or not...
Persistent link: https://www.econbiz.de/10008742954
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Consensual and Conflictual Democratization
Cervellati, Matteo; Fortunato, Piergiuseppe; Sunde, Uwe - Institute for the Study of Labor (IZA) - 2006
We study the process of endogenous democratization from inefficient oligarchic systems in an economy where heterogeneous individuals can get involved in predation activities. The features of democracies are shown to be crucially related to the conditions under which democratization initially...
Persistent link: https://www.econbiz.de/10005703836
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Hobbes to Rousseau: Inequality, Institutions, and Development
Cervellati, Matteo; Fortunato, Piergiuseppe; Sunde, Uwe - Institute for the Study of Labor (IZA) - 2005
We analyze the endogenous evolution of economic and political institutions and the interdependencies with the process of economic development. Favorable economic institutions ensure the appropriability of rents in form of a state of law. We study the conditions under which a state of law can be...
Persistent link: https://www.econbiz.de/10005822516
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Non-Profit Organizations in a Bureaucratic Environment
Grout, Paul; Schnedler, Wendelin - Institute for the Study of Labor (IZA) - 2008
How does the environment of an organization influence whether workers voluntarily provide effort? We study the power relationship between a non-profit unit (e.g. university department, NGO, health trust), where workers care about the result of their work, and a bureaucrat, who supplies some...
Persistent link: https://www.econbiz.de/10005822618
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Wirtschaftliche Entwicklung und Demokratie: Ist Demokratie ein Wohlstandsmotor oder ein Wohlstandsprodukt?
Sunde, Uwe - Institute for the Study of Labor (IZA) - 2006
Praktisch alle wirtschaftlich entwickelten Länder der Welt sind demokratisch. Sind demokratische Strukturen also kausal für wirtschaftlichen Wohlstand und Wachstum? Oder ist es vielmehr der wirtschaftliche Entwicklungsstand eines Landes, der eine Demokratie erst ermöglicht? Dieser Artikel...
Persistent link: https://www.econbiz.de/10005822946