In this paper, we ask, what are the dynamic consequences of a greater centralization or decentralization of decision-making authority (to appoint managers) on the quality of managers who are actually appointed? The central result we obtain is that there is a greater variability (over time) in...

This paper focuses on questions such as what determines the societal level of honesty (that is, the proportion of honest individuals in the economy), and why some economies may be more honest, or less honest, than others. A central feature of our model is that an individual’s (Bayesian)...