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 … technology trade, marketing and imperfect capital markets. Paying an import with export goods rather than cash (barter) helps to …

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 …

This paper presents a non-technical overview of the recent investment literature with a special emphasis on the … connection between technological progress and the investment decision. First of all, we acknowledge that some dramatic advances …. Nonetheless, this new literature has not satisfactorily accounted for the investment-specific (or embodied) nature of technical …