"Could the terrorist attacks on the Twin Towers have been avoided? What about the recent global financial crisis? Behind these apparently very different events it is possible to identify a common element of organizational myopia - a syndrome that severely limits the capacity of organizations to...

Using the between-sector variation in income as a new measure of economic uncertainty, this paper proposes simple models and supportive empirical evidence for the causal relations between economic uncertainty and government size in the open economy setting. Key empirical findings include: (1) a...