This paper offers a fresh perspective on institutional change drawing on recent advances in the economic theory of contracting. Contractual incompleteness enhances organizational flexibility, but only at the cost of perceptual ambiguity. We hypothesize that the willingness to engage in a highly...

Criticism of European solidarity relies on three cornerstone arguments with mythological features. First is the “Myth of the Beggar”: it is believed that supranational solidarity is self-defeating, as it produces a moral-hazard scheme where endogenous incentives to reform (otherwise known as...