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Institutions are important for proper economic performance, but are replaceable by trust or other social norms. We show that when proper institutions and trust are missing, integrity of the individuals can replace them. We construct a model of a transactions-based economy with contracts...
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Institutions are important for proper economic performance, but are replaceable by trust or other social norms. We show that when proper institutions and trust are missing, integrity of the individuals can replace them. We construct a model of a transactions-based economy with contracts...
Persistent link: https://www.econbiz.de/10013157500
Persistent link: https://www.econbiz.de/10009125768
We analyze investment decisions when information is costly, with and without delegation to an agent. We use a rational-inattention model and compare it with a canonical signal-extraction model. We identify three "investment conditions". In "sour" conditions, no information is acquired and no...
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"China's rise as an economic power has posed some challenging questions: how did China achieve GDP growth that was even … country as many observers expected? And can China sustain its rapid economic growth with its existing social system … historical relationship between institutions and economic development in China, drawing comparisons with England, Japan and other …
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