The paper considers a model with two goods: a private good and an "environmental" good. The analysis has two basic ingredients : the two goods are imperfectly substitutable and the long run characteristics of substitution are uncertain. An ecological discount rate is defined. It is argued that a...

This paper argues that the internal organization of the firm and the growth process interact strongly to determine simultaneously the power of incentives within the firm and the growth rate of the economy. We show how agents within the firm can invest either by using their own human capital or...