This paper investigates the interaction between a privately informed firms contracts for labour and its contracts for credit. The analysis shows that if the worker has no ex post outside opportunities, or if the liquidation value of the firm is large, then the credit contract can always be...

The authors employ a three-country equilibrium framework to compare the welfare effects of alternative methods of allocating import quotas or voluntary export restraints among sources of supply. They compare a scheme of allocating the quota or the voluntary expor t restraint in proportion to the...