This paper deals with the relationship between management quality, firm size, and managerial compensation.

We exploit a universe dataset of state school students in England with linkedtest score records to document the evolution of attainment through school fordifferent ethnic groups. The analysis yields a number of striking findings. First,we show that, controlling for personal characteristics, all...

Truancy is often seen as irrational behaviour on the part of school ageyouth. This paper takes the opposite view and models truancy as thesolution to a time allocation problem in which youths derive currentreturns from activities that reduce time spent at school. The model isestimated using a US...

This paper develops a comprehensive endogenous growth framework to determinethe optimal mix of growth policies. The analysis is novel in that we captureimportant elements of the tax-transfer system and fully take into account transitionaldynamics in our numerical analysis. Currently, for...

In der öffentlichen Diskussion werden die Bezüge von Führungskräften mit der Semantikder Leistungsgerechtigkeit bewertet. Allerdings zeigt eine detaillierte Analysevon Prinzipal-Agent-Problemen in der modernen Wirtschaft, dass eine leistungsgerechteEntlohnung oft nicht das beste Ergebnis...

This paper proposes a theory for the gradual evolution of knowl-edge diffusion and growth over the very long run. A feedback mechanismbetween capital accumulation and the ease of knowledge diffusion explains along epoch of (quasi-) stasis and an epoch of high growth linked by a grad-ual economic...

Conventional R&D-based growth theory suggests that productivitygrowth is positively correlated with population size or population growth,an implication which is hard to see in the data. Here we integrate R&D-basedgrowth into a unied growth setup with micro-founded fertility and...

Previous research on optimal R&D subsidies has focussed on the long run.This paper characterizes the optimal time path of R&D subsidization in a semi-endogenous growth model, by exploiting a recently developed numerical method.Starting from the steady state under current R&D subsidization in the...

In contrast to the very large literature on skill-biased technical change among workers, thereis hardly any work on the importance of skills for the entrepreneurs who employ thoseworkers, and in particular on their evolution over time. This paper proposes a simple theory ofskill-biased change in...

This paper focuses on the relationship between firms’ technological capabilities and differentforms of cooperation for innovation by combining the analysis of both micro and meso levels,i.e. the level of the firm and of the geographical region. Our findings, based on the Fourth UKCommunity...