This paper proposes an analysis of the links between the internal organization of firms and macroeconomic growth. We present a Schumpeterian growth model in which firms face agency costs. These agency costs are due to the existence of asymmetries of information and the formation of internal...

We study the degree of corruption in a hierarchical model of government. In particular, we explore the question of whether adding a layer of government simply increases the total amount of corruption or generates an organizational efficiency (via a principal-agent relationship between levels of...

Cultural transmission mechanisms which favor the direct transmission of the parents traits to their children may be adaptative to natural selection when opposed to mechanisms in which the parents choose for the offspring the highest fitness at any time. This is so, in particular, in environments...

The paper documents how the code of conduct implied by membership of the escudo in the Exchange Rate Mechanism of the Europan Monetary System (ERM) allowed Portugal to qualify for Economic and Monetary Union (EMU), ultimately moving the currency into the euro. This unwritten code of conduct...

This paper analyzes the links between the internal organization of firms and macroeconomic growth. We present a Schumpeterian growth model in which firms face dynamic agency costs. These agency costs are due to the formation of vertical collusions within the organization. To respond to the...

We investigate local strong rationality (LSR) in a one step forward looking univariate model with memory one. Eductive arguments are used to determine when common knowledge (CK) that the solution is near some perfect foresight path is sufficient to trigger complete coordination on that path...

This paper presents an economic analysis of the intergenerational transmission of ethnic and religious traits through family socialization and marital segregation decisions. Frequency of intra-group marriage (homogamy), as well as socialization rates of religious and ethnic groups, depend on the...

In this paper we present a model of cultural transmission of preferences on goods some of which are provided publicly through simple majority voting. We emphasize the existence of a two way causality between socialization decisions and political outcomes. This generates the possiblity of...

We provide a two-period model of competition in insurance market under incomplete information. Each agent, together with his initial insurer, learns about his type through accidents, but other insurers may not, depending on informational structures. We show that (i) keeping information about...