I investigate the impact of environmental volatility and the cost of information on the preferred organizational structure, as determined by the allocation of decision rights, the compensation structure of the managers and the degree of operational integration (such as the use of shared...

We lay out an empirical and a theoretical model to analyze the effects of non-fundamental exchange rate volatility on economic activity and welfare. In the first part of the paper, the GARCH-SVARmodel is applied to measure empirically the effect of the conditional exogenous exchange rate...