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We show that privatization can be beneficial even if the government is rational and benevolent, and if the firm's economic and informational environment is independent of the governance structure. The model assumes that wage contracts between the firm's owner (government or private entrepreneur)...
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We provide a theory of how growth, corruption, and a low-powered public-sector pay scale coexist in a stable … a tournament, to address how a low-powered pay scale can effectively elicit effort in a tournament infested with …
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