This paper introduces an information problem into Yang and Ng's model of the firm, to study the process of social searching for the efficient structure of residual rights. The analysis adopts the concept of Walrasian sequential equilibrium developed in the literature of endogenous specialization...

The People's Republic of China introduced indexed government bonds in the face of the inflation panic of 1988-89 and reintroduced them when inflation surged upward again in 1993. Measures of inflation expectations--as derived from the trading prices of these indexed bonds--suggest that the...

This paper examines the choice among alternative modes of direct foreign investment, namely, the wholly owned subsidiary (the S option) and joint venture (the J option), vis-a-vis licensing (the L option). The focus is on the role of moral hazard, difference in risk attitude and the prospect of...

This study examines the interdependency between Chinese agricultural and industrial sectors. A dual economic model was developed to investigate the relationship between the two sectors and factors affecting Chinese economic development. The study reveals that inputs, such as labor, are important...

A prominent argument regarding the effects of trade liberalization on the dispersion of wages in LDCs is that trade liberalization should lower the relative demand for more-skilled workers by inducing between-sector shifts towards sectors intensive in unskilled labor. Based on a disaggregating,...

This study investigates gender occupational attainment and earnings differentials in El Salvador and Costa Rica at the end of the 1980s. During this decade, El Salvador experienced a civil war and an economic depression. Costa Rica was also mired in a recession in the early 1980s, but programs...

Economic distortions often accompany the attempt by lower-income countries to develop. This paper examines the consequences of two such distortions: an export-share requirement whereby foreign capital producing in a local enclave is allowed to sell only a fraction of its output in the local...