In his seminal work on fiscal federalism, Oates (1972) addressed the socalled Decentralization Theorem, which states that, if such factors as scale economies and spillovers are left out of consideration, a decentralized system is always more efficient than a centralized system for the supply of...

This dissertation attempts to construct a theory which states that forms of enterprise are determined to a large extent by potential market failure. In the four independent, but closely interrelated chapters, I derive this hypothesis through theoretical reasoning, and suppose it by referring to...

This paper attempts to provide a framework for the formal analysis of the institution of voting in a corporation. I assume that there is a market for control, and examine whether corporate democracy is attained through voting by shareholders. It is shown that whether corporate democracy is...

This paper examines whether production efficiency is attained in a capitalistic class economy where complete contracts are not available. It is shown that such an economy often fails to achieve production efficiency.

It is often argued that cooperative firms are financially less viable than ivestor-owned firms. From a fundamental point of view, however, this does not seem a fair comparison, since the market for firm ownership is usually only available to investor-owned firms in our economy. This paper...

Theoretical studies suggest that corruption may counteract government failure and promote economic growth in the short run, given exogenously determined sub optimal bureaucratic rules and regulations. As the government failure is itself a function of corruption, however, corruption should have...

Theoretical studies suggest that corruption may counteract government failure and promote economic growth in the short run, given exogenously determined suboptimal bureaucratic rules and regulations. As the government failure is itself a function of corruption, however, corruption should have...

While conventional approaches to fiscal decentralization suggest that decentralization lowers the power of redistribution among regions, recent theories argue that fiscal decentralization works as a commitment device. In this manner, where the budget in a given region is highly dependent on...

Frequent revision of firms' actions facilitates to sustain tacit collusion. Even when some, not all, firms revise their actions with enhanced frequency, the change contributes positively to collusive sustainability, i.e., lowering the critical discount factor. In this sense, the added frequency...

A possible rationale for institutional conservatism, i.e., reluctance to adjust actions in accordance with external environmental changes, may be found in the payoff stabilisation effect it strategically affords. Suppose, for example, that one of the duopolists is capable of adjusting its...