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How costly is the misallocation of production that we might expect to result from distortions such as market power, incomplete contracts, taxes, regulations, or corruption? This paper develops new tools for the study of misallocation that place minimal assumptions on firms’ underlying...
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. Finally, we look at a simple majority voting model. It turns out depending on the distribution of human capital, autarky and … free trade with and without compensation may be the outcome of majority voting …
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