The official dollarization of the Cuban economy starting in 1993 was an integral part of the policy reforms measured implemented to confront the economic crisis of the 1990s. The socioeconomic effects of these policies are still being felt in Cuban society today. What is dollarization? What were...

This paper presents a detailed analysis of the principal socioeconomic characteristics of the population of the Bronx at the end of 2009, and compares them with the socioeconomic characteristics of the populations of the State of New York and the (rest of the) United States. The paper is divided...

This paper examines the main characteristics of Cuba’s de-dollarization program, the objectives of these policy measures, and their principal causes and motivations. The paper is organized in three sections. The first section describes the policy measures associated with the process of...

The labor adjustments and the economic changes present limitations, and if left unchanged, are likely to hinder Cuba’s prospects for successful economic reforms. The present article examines recent labor adjustments in Cuba and presents a balanced analysis of the new economic measures. This...

Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this hypothesis in a canonical buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant and...

We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the...

This paper reports data from a laboratory experiment on two-period moral hazard problems. The findings corroborate the contract-theoretic insight that even though the periods are technologically unrelated, due to incentive considerations principals can benefit from offering long-term contracts...

We study a continuous-time game of strategic experimentation in which the players try to assess the failure rate of some new equipment or technology. Breakdowns occur at the jump times of a Poisson process whose unknown intensity is either high or low. In marked contrast to existing models, we...

We study endogenous group formation in tournaments employing experimental three-player contests. We find that players in endogenously formed alliances cope better with the moral hazard problem in groups than players who are forced into an alliance. Also, players who are committed to expending...

The compensation of executive board members in Germany has become a highly controversial topic since Vodafone's hostile takeover of Mannesmann in 2000 and it is again in the spotlight since the outbreak of the financial crisis of 2009. Based on unique panel data evidence of the 500 largest firms...