Technical determinism is often presented as a shortcoming of the old neoclassical approach of which the "new theories" are supposed to be ridded. This paper shows that technical determinism is nevertheless still present.

This paper studies the design of financial agreements (claims, tightness of relationships) between entrepreneurs and investors, in the case where both must exert costly unobservable efforts to improve the profitability of the firm.

We study the investment incentives of a regulated, incumbent firm in a deregulation process. The regulator cannot commit to a long-term regulatory policy, and investment decisions are taken before optimal regulatory policies are imposed. We characterize the regulated incumbent's incentive to...

This paper endogenizes financial contagion and financial crises from financial institutions. We show that financial crises can emanate from financial institutions which generate soft-budget constraints (SBC). The prevailing SBC in an economy distort in-formation such that the interbank lending...

This paper looks at the interaction between two firms based in different countries, each which faces the export v MNE choice concerning the servicing of the other's home market. Firms also have a choice over investment in a new technology which allows a corporate wide reduction in variable costs...

In this paper we study the problem of ecient production and allocation of indi- visible objects among a set of consumers. We assume that the agents' preferences depend on the bundle of objects and the quantity of money they consume. Further- more, we assume that preferences are quasilinear in...

This paper uses firm-level production data for 1987 and 1993, disaggregated by industry and country, to inspect the geographical diversification of the leading firms in the EU.

We analyze the effect of ownership on post-privatization performance in a virtually complete population of medium and large firms privatized in a model large-scale privatization economy (Czech Republic). We reject the hypothesis that domestic or foreign private ownership, in either moderate or...

Partnerships are the prevalent organizational form in many industries. Most partnerships share profits equally among the partners. Following Kandel and Lazear (1992) it is often argued that "peer pressure" mitigates the arising free-rider problem. This line of reasoning takes the equal sharing...

We develop a dynamic capital valuation model in which each farm can take an action with farm-varying cost to increase the probability of not contracting a disease. In the presence of infection externalities, circumstances are identified under which multiple equilibria exist and where the one...