Gray and Benassy analysed the optimal wage indexation choice for representative agents and labor unions when monetary or/and real shocks are generated by a symmetric distribution. Here their analysis is extended to the more relevant choice for firm owners. In general, the probability of...

When advanced technologies increase productivity as delays between inputs and output in-crease, a new reason for the existence of corporations appears. A corporation, like government, is potentially deathless and can rationally adopt technological advances with output delays longer than a...