The purpose of this paper is to understand how the effect of the government size per capita on the steady‐state level of output and on the growth rate differs between LDC’s and developed countries. It is shown that an increase in government size will increase the steady‐state level of...

This article examines the role of middlemen in bilateral search markets (e.g., employment agencies, real estate brokers). It is shown that the middleman narrows the set of buyer (firm) and seller (worker) types who search; seller types with high valuations and buyer types with low valuations...