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When should a government provide a service inhouse and when should it contract out provision? We develop a model in which the provider can invest in improving the quality of service or reducing cost. If contracts are incomplete, the private provider has a stronger incentive to engage in both...
Persistent link: https://www.econbiz.de/10012473090
and how these responses, in turn, are transmitted to the labor market. In previous work, we have argued that outsourcing … input purchases from the Census of Manufactures. We construct industry-by-industry estimates of outsourcing for the period … 1972-1990 and reexamine whether outsourcing has contributed to an increase in relative demand for skilled labor. Our main …
Persistent link: https://www.econbiz.de/10012473440
Slaughter (1993), in this paper I try to determine the extent to which outsourcing by multinational corporations contributed to … firms. I find that most of these facts are inconsistent with widespread outsourcing. Second, to test more rigorously whether … and in fact may be price complements. Taken together, these findings indicate that multinational outsourcing contributed …
Persistent link: https://www.econbiz.de/10012473622
Can allowing foreign participation in the banking sector increase real output, despite the imperfectly competitive nature of the industry? Using a new model of heterogeneous, imperfectly competitive lenders and a simple search process, we show how endogenous markups (the net interest margin...
Persistent link: https://www.econbiz.de/10012462623
The recent banking crisis highlights the challenges faced in credit intermediation. New online peer-to-peer lending markets offer opportunities to examine lending models that primarily cater to small borrowers and that generate more types of information on which to screen. This paper evaluates...
Persistent link: https://www.econbiz.de/10012463407
lobbying (internal organization vs. trade association) by firms in administrative agencies. It explores the power and limitations of the collective action theories and transaction cost theories in explaining lobbying. It introduces a dataset of over 900 lobbying contacts cover 101 issues at the...
Persistent link: https://www.econbiz.de/10012471024
trade. One simple taxonomy separates the theory into vertical' models in which firms geographically separate activities by …
Persistent link: https://www.econbiz.de/10012471623
This is an invited chapter for the forthcoming Volume 4 of the Handbook of Industrial Organization. We focus on markets with frictions, such as transaction costs, asymmetric information, search and matching frictions. We discuss how such frictions affect allocations, favor the emergence of...
Persistent link: https://www.econbiz.de/10012629479
The paper emphasizes initially the effects of moving transaction costs on the potential effect of government rent subsidy programs. As a concomitant to this analysis, the paper reaffirms the low income elasticities of housing expenditure among low-income renters found by others. Moving...
Persistent link: https://www.econbiz.de/10012478093
This paper presents the competitive equilibrium of an economy in which people hold money for transactions purposes. It studies both the steady states which result from different rates of monetary expansion and the effects of such non-steady state events as an open market operation. Even though...
Persistent link: https://www.econbiz.de/10012478127