This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search … underinvestment on both sides of the market. But when market frictions become negligible, the equilibrium investment levels tend …

business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial … business equity at the intensive margin, but decrease entrepreneurial investment at the extensive margin. To test these … due to tax avoidance or evasion, but increase investment in private businesses that are also worthwhile in the absence of …

We analyze both theoretically and empirically how monetary incentives and information about others’ behavior affect …

This paper studies the importance of incentives as a determinant of international trade flows. We argue that barter …, countertrade and foreign direct investment can be seen as efficient institutions that mitigate contractual hazards which arise in …