This paper applies a modified version of the `income choice' model to explain variations in new-firm formation across Italian provinces over the period 1985-8. Based on a panel data of start-up activity in 78 Italian provinces and using two different databases, we find support for the overall...

The decision of how best to appropriate the value of new economic knowledge is reached by individuals within the context of the decision-making process embedded in the principal-agent model and applied to organizations. Because new economic knowledge is not only imperfect but also inherently...