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In identifying the free riders in the voluntary provision of a pure public good, Andreoni and McGuire (1993) simplify Bergstrom, Blume, and Varian's (1986)algorithm by systematizing the selection process of potential contributors. We propose an alternative algorithm in which a concept of...
Persistent link: https://www.econbiz.de/10005582159
Business groups play significant economic roles in many countries. Motivated by the observation that the literature on business groups is ever-expanding yet providing ambiguous or conflicting results based on empirical investigations, this paper intends to first develop a theoretical model to...
Persistent link: https://www.econbiz.de/10008860858
A signaling model is developed to investigate the consequences of corporate income taxation in the presence of adverse selection in the equity market. The model obtains a unique, informationally constrained efficient equilibrium in which a better quality firm retains more inside equity, and, as...
Persistent link: https://www.econbiz.de/10010687216