This paper analyzes the role of complexity in production on the level of output and on its rate of growth. We develop an endogenous growth model with human capital accumulation, where increased complexity could exert either a positive or a negative effect on the level of output but always a...

This paper analyzes the role of complexity in production on the level of output and on its rate of growth. We develop an endogenous growth model with human capital accumulation, where increased complexity could exert either a positive or a negative effect on the level of output but always a...

This paper explores how banks specialize into different activities when they start with differing comparative advantages in some industry or geographic area or product. The possibility of coordination failure, i.e. wrong specialization is highlighted with risk neutral financial intermediaries....

A division of a corporation considers investing in a new, technologically superior process. The case gives the usual data for historical analysis, financial-statement forecasting, and capital budgeting, plus a PIMS review. In addition, uncertainty in the forecasts can be used to introduce...