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The authors analyze two hitherto little studied but salient questions concerning the trinity of asymmetric information, entrepreneurial activity, and the scope of fiscal policy in an open regional economy. First, the authors use a two-period model to analyze the contractual relationship between...
Persistent link: https://www.econbiz.de/10009004453
The authors provide the first theoretical analysis of a one-sector, discrete-time, Schumpeterian model of growth in a regional economy in which consumers are risk neutral, there is no population growth, monopolistic entrepreneurs produce intermediate goods, and a single consumption good is...
Persistent link: https://www.econbiz.de/10010561614
The authors provide the first theoretical analysis of a one-sector, discrete-time, Schumpeterian model of growth in a regional economy in which consumers are risk neutral, there is no population growth, monopolistic entrepreneurs produce intermediate goods, and a single consumption good is...
Persistent link: https://www.econbiz.de/10010569275
We analyze a two-period signaling model in which a representative entrepreneur in a regional economy has a project that … generates a random cash flow and that requires investment that the entrepreneur raises from a competitive market. The project …'s type is known to the entrepreneur but not to the investors. Further, the entrepreneur is restricted to issuing debt only or …
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