In the presence of asymmetric information, the stage at which investment-financing decisions are made is crucial for the composition of international capital flows as well as for the efficiency of channeling savings into investment. This paper compares the implications of two extreme assumptions...

Several authors have indicated a contradiction between consistent aggregation of subjective beliefs and tastes, and a Pareto condition. We argue that the Pareto condition that implies the contradiction is not compelling. Society should not necessarily endorse a unanimous choice when it is based...

A small literature on General Purpose Technology has emerged in recent years. It has studied a number of channels through which a new technology affects the economy, such as secondary innovations and diffusion. Our goal is to examine new channels of adjustment that operate through labor markets....

In this paper, we have emphasized information problems which lead to home bias and insufficient amounts of capital inflows.

A basic feature of the industry wage model presented here is a distinction between unionized industries, with collective bargaining and thus a rigid setting framework, and non-unionized industries, where wage determination is more competitive.