early stages of development, the range of projects and the amount of information are limited and agency costs are high … investigation of the development of financial institutions. We contrast the information aggregation role of stock markets and … information production role of banks. Because the amount of available information increases with development, our model predicts …

introduced by the presence of moral hazard naturally depends on the information structure in the economy; it is cheaper to induce … correct incentives in a society which prossesses better ex port information. …

This paper offers a theory of development which links the degree of market incompleteness to capital accumulation and … growth. At early stages of development, the presence of indivisible projects limits the degree of risk … inability to diversify idiosyncratic risks introduces high uncertainty in the growth process. The typical development pattern …

differ as these societies have access to different amounts of information. This lack of information makes it hard to give the … right incentives to managers and entrepreneurs. We argue that differences in the amount of information arise because of the … poor economies, thus insufficient information to set the appropriate standards for firm performance. The model predicts a …

these societies have access to different amounts of information. This lack of information makes it hard to give the right … incentives to managers and entrepreneurs. We argue that differences in the amount of information arise because of the differences … poor economies, thus insufficient information to set the appropriate standards for firm performance. Our model predicts a …

these societies have access to different amounts of information. The lack of information in less developped economies makes … information have a variety of sources. As well as factors related to the informational infrastructure, we emphasize that societies … accumulate information by repeating certain tasks. Poor societies may therefore have less information partly because the scarcity …