This paper studies the choice of organizational forms in a multi-task principal-agent model. We compare a functional organization in which the firm is organized into functional departments such as marketing and R&D to a product-based organization in which the firm is organized into product...

This paper studies the choice of organizational forms in a multi-task principal-agent model. We compare a functional organization in which the firm is organized into functional departments such as marketing and R&D to a product-based organization in which the firm is organized into product...

Despite the increasing importance of and huge growth in SSOs and the flurry of research on the economics of SSOs in the last decade, no comprehensive review of the literature exists. Such an undertaking is beyond the scope of this paper. Here, we address a more modest goal: a selective review...

Public opposition to the genetic engineering of food crops (GM food) hasnot been based solely on concern about biological risks. Economic riskshave been widely cited too: the fear that the world’s food supply willbe concentrated in the hands of a few large firms, the fear that suchfirms will...

A national authority wishes to attract foreign direct investment (FDI) to create local jobs. We analyse the optimal national trade policy when local authorities might offer subsidies to convince a multi-national enterprise (MNE) to invest in their jurisdiction. With centralised decision-making...

In this paper we address the relationship between trade and endogenous pollution levels with a mechanism where trade policy provides the home government with a credible threat the influence firm’s strategic behavior to adopt cleaner technologies. The government has a greater incentive to...

Innovative activities often are heavily regulated. Reviews conducted by administrative agencies take time and are not perfectly accurate. Of particular concern is whether, by design or not, such agencies discriminate against more important innovations by taking more time to perform their...

This paper analyses the impact of inequality on growth when technical progress is driven by innovations. It is assumed that consumers have hierarchic preferences. As a result inequality affects demand and therefore the incentive to innovate. Whether more inequality is harmful or beneficial for...

The current Paper addresses the relationship between trade and endogenous pollution levels. The main focus is quite different from the previous literature. The mechanism linking pollution and trade is that trade provides the home government with a credible threat that helps motivate domestic...