This paper studies an environment in which information aggregation interacts with investment decisions. The first contribution of the paper is to develop a tractable model of such interactions. The second contribution is to solve the model in closed form and derive a series of implications that...

Why do countries with a higher prevalence of disease grow much more slowly than their seemingly-similar neighbors? While Acemoglu, Johnson and Robinson (2001) document a relationship between disease and growth for colonies and argue that the colonization process is an important determinant of...