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 …

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 …