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This paper analyses the effects of disease and war on the accumulation of human and physical capital. We employ an overlapping-generations frame-work in which young adults, confronted with such hazards and motivated by old-age provision and altruism, make decisions about investments in schooling...
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contracts literature hold up to recent empirical evidence. Guided by theory, we arrange services according to the type and …
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We address the impact of corruption in a developing economy in the context of an empirically relevant hold-up problem - when a foreign firm sinks an investment to provide infrastructure services. We focus on the structure of the economy's bureaucracy, which can be centralized or decentralized,...
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theoretical contribution is combining a job matching model with monopolistic competition in the goods market and individual wage … bargaining. Product market competition affects unemployment by two channels: the output expansion effect and a countervailing … effect due to a hiring externality. Competition is then linked to barriers to entry. We calibrate the model to US data and …
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