We develop a dynamic exchange environment to analyze the value created by contracting institutions. In the model, a contract is a pre-agreed specification of behavior, which may be subsequently enforced by a third party. We study the effect of economic fundamentals on the demand for such an...

Information and communications technology (ICT) is more common in some countries than in others. I find evidence that suggests that institutional firing costs may be a factor contributing to this divide, and develop an industry model to account for this finding. In the model, as the technology...