innovation activities. The selection of high-skill managers is more important for innovation activities. As the economy … approaches the technology frontier, selection becomes more important. As a result, countries at early stages of development … investments, but little selection. Closer to the world technology frontier, there is a switch to an innovation-based strategy with …

This paper considers a housing insurance market in which buildings have different damage probabilities. Insurers use … imperfect tests to find out about buildings’ damage types. The insurance market is a natural monopoly. If more than one insurer …. First we show that the natural insurance monopoly need not be sustainable. Then we show that in the equilibrium industry …

insurance and preferences are nonseparable. This result appears to support the conclusion of the above mentioned folk theorem …

, equilibrium wage dispersion is necessary for the economy to approximate efficiency. Without wage dispersion, workers do not search …