We develop a theory that explains the difference between public and private ownership for the case of firms that are well approximated by an owner\managed or closely held form of firm. The theory is based on government monitoring and control of actions that potentially allow managersto divert...

Negotiations between a country in default and its international creditors are modeled as a dynamic game in an environment of weak contractual enforcement. The country cannot borrow internation- ally until it settles with all creditors. Delay arises in equilibrium as creditors engage in strategic...