The economy is modeled as a set of leveraged firms (including households) with potentially superior information who choose their assets to maximize their net-worth, while an efficient, not-for-profit government enacts and administers constitutional rules for free trading of goods, services and...

This paper compares the ability to select the efficient policy of a parliamentary and a presidential constitutional setup. In order to do it we build a dynamic theoretical model with asymmetric information that succeeds in addressing both the politicians accountability and the competence...