We study the effects of a country’s propensity to renegotiate transportation infrastructure contracts on the technical efficiency of the firms they attract. Firms are characterized by their ability to lobby and by their technical efficiency. In equilibrium, countries with a higher propensity...

Long-term relationships between business firms and investment banks are pervasive in developed security markets and there is evidence that better monitoring and information result from these relationships. Therefore, security markets should allocate resources better when an investment banking...