This paper offers a rationale for limiting the delegation of (real) authority, which neither relies on insurance arguments nor depends on ownership structure. We analyse a repeated hidden action model in which the actions of a risk neutral agent determine his future outside option. Consequently,...

The paper compares productive efficiency in public and private firms. We study a principal-agent model in which the firm's manager is privately informed about a cost parameter and exerts unobservable cost reducing effort, while the owner can conduct costly audits to obtain information about the...

This paper incorporates the interdisciplinary New Institutional and Transaction Costs Economics (combining Economics, Organization, Law, Sociology, Behavioral and Political Sciences) and suggests a holistic framework for analysis of agrarian contracts. First, it specifies type and importance of...

While European health care systems are mostly public and similar the contrast is large to the US health industry based to a large extent in the market. Using competence bloc theory the industrial potential of Swedish and European health care is assessed and compared with US health industry. To...

This study attempts to identify some characteristics of the relationship between journalists and politicians. The methodology of the research is based on the analysis of responses to interviews in depth applied to a sample of 50 print and audiovisual journalists from Bucharest, Suceava, Pitesti,...

In this paper a general equilibrium model is constructed to explain the emergence of firms and change in firm size by the tradeoff between economies of specialization and transaction cost. We show that firms emerge from the development of division of labor if the transaction efficiency for labor...

The empirical effect of enterprise autonomy on the performance of state-owned enterprises is surprisingly scant despite autonomy being a preferred reform instrument in many countries, and of ten chosen over privatization. Using longitudinal data on performance contracts for state-owned...

This work is focused on identifying a circular pull production control system (PPCS) and make emphasis on the presence of a stability attribute. It is an introductory paper to an extended study of macroeconomic financial stability in a physically open but systemic closed system. Previous work...

A citizen and a bureaucrat implement a project jointly, with the bureaucrat holding executive authority. The citizen's investment yields information, which raises output, and also has supervision benefits. We show that a higher degree of dishonesty increases the citizen's incentive to invest,...

Since an enterprise, which is to be privatized, has to be restructured in uncertainty, and the restructuring investments are sunk when the final decision on the sale price is taken, there is an imminent danger that restructuring is not efficient, and there is underinvestment. We consider,...