In the 'Knightian' theory of entrepreneurship, entrepreneurs provide insurance to workers by paying fixed wages and bear all the risk of production. This paper endogenizes entrepreneurial risk by allowing for optimal insurance contracts as well as the occupational self-selection. Moral hazard...

Recently the data underlying the Annual Census of Production has been made available to academic economist in the UK. The data provides information on production activity in the UK at the plant level. This paper provides some preliminary description of the data and discuses a few of its...

Evaluating the true level of factor inputs (such as labour and capital) is an essential component of estimating an economy’s productive potential. The standard measure of the total economy’s labour input is to aggregate the number of people employed. A related measure of labour inputs is to...

There is evidence that small firms are more prevalent in some sectors of the economy than in others. In this article, we search for explanation for this phenomenon. Using a panel data of Chilean manufacturing firms for the period 1979-1994, we identify th

Purpose: The present study is intended to analyze hospital efficiency according to ownership. Methodology/approach: The method used in this study is the data envelopment analysis (variable returns to scale-DEA). With this method, the efficiency levels of the active training hospitals in Turkey...

This paper shows that monitoring too much a partner in the initial phase of a relationship may not be optimal if the goal is to determine his loyalty to the match and if the cost of ending the relationship increases over time. The intuition is simple: by monitoring too much we learn less on how...

The paper studies managerial compensation schemes for suituations, where the current management knows more about the company's expected profitability than the new employee. When a manager is offered a contract with only a low fixed salary but high profit participation, he will be afraid that the...

We present a new model of employee involvement with incomplete contracts and uncertain monitoring. Distributional considerations limit productivity and generate excessive monitoring under employee control, so co-determination can increase both efficiency and labour's share of the enterprise...

This paper examines the remarkable learning-by-doing in the windmill industry since it emerged in the beginning of the 1980's. Green subsidies for producing electricity by wind power has been a precondition for the rapid growth in the production of windmills. Based on time series of prices of...

In this article we show that technological parameter estimates obtained by estimating a cost function that is derivable as the dual of a production function can be biased and inconsistent if the stochastic structure of the model arises from certain types of behavioural assumptions made about...