Voting is a common feature of most firms. Unrestricted voting, however, can lead to unstable decision-making. The authors find that firms make trade-offs among collective decision-making, production scale, firm structure, and voter characteristics that are consistent with efforts to economize on...

Early neoclassical analyses predicted that poor countries would grow faster than wealthy countries because of technological advances and diminishing returns to capital in the latter. The reverse has occurred: poor countries are falling back rather than catching up. The authors suggest here that...