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We model entry by entrepreneurs into new markets in developing economies with regulatory barriers in the form of … licence fees and bureaucratic delay. Because laissez faire leads to quot;excessivequot; entry, a licence fee can increase … welfare by discouraging entry. However, in the presence of a licence fee, bureaucratic delay creates a strategic opportunity …
Persistent link: https://www.econbiz.de/10012779967
Previous research shows that firms shroud high add-on prices in competitive markets with naive consumers leading to inefficiency. We analyze the effects of regulatory intervention via educating naive consumers on equilibrium prices and welfare. Our model allows firms to shroud, unshroud, or...
Persistent link: https://www.econbiz.de/10013118774
This paper studies the interplay between left-handedness and economic development. To explain the decline and subsequent recovery of left-handedness observed over the last few centuries in the Western world, we propose a theory in which economic development influences the prevalence of...
Persistent link: https://www.econbiz.de/10014238629
decrease firm entry cost …
Persistent link: https://www.econbiz.de/10014078735
AI is transforming labor markets around the world. Existing research has focused on advanced economies but has neglected developing economies. Different impacts of AI on labor markets in different countries arise not only from heterogeneous occupational structures, but also from the fact that...
Persistent link: https://www.econbiz.de/10014083968
This paper reviews the literature on the relationship between gender (in)equality and industrialization in the context of developing countries. It documents past developments, accounting for pre-industrial preconditions that might explain current differences in gender roles across societies....
Persistent link: https://www.econbiz.de/10013243095
Over half of all workers in the developing world are self-employed. Although some self-employment is chosen by entrepreneurs with well-defined projects and ambitions, roughly two thirds results from individuals having no better alternatives. The importance of self-employment in the overall...
Persistent link: https://www.econbiz.de/10013051450
We analyze how globalization has affected the sectoral anatomy of regional growth in Germany over the period 1978-2008. The aggregate German economy is characterized by a secular decline of manufacturing and a rise of modern service industries. This trend– also known as Petty's law – is not...
Persistent link: https://www.econbiz.de/10013054568
This research suggests that a Darwinian evolution of entrepreneurial spirit played a significant role in the process of economic development and the dynamics of inequality within and across societies. The study argues that entrepreneurial spirit evolved non-monotonically in the course of human...
Persistent link: https://www.econbiz.de/10013110853
Although the Industrial Revolution is often characterized as the culmination of a process of commercialisation, the precise nature of such a link remains unclear. This paper models and analyzes such link: the role of commercialisation in raising efficiency wages as impersonal and anonymous...
Persistent link: https://www.econbiz.de/10013029125