Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/productivity-and-credibility-in-industry-equilibrium-PiV2WaZH2N
References (103)
-
R. Kranton (1996)
The Formation of Cooperative RelationshipsJournal of Law Economics & Organization, 12
-
Glenn Ellison, Richard Holden (2014)
A Theory of Rule DevelopmentJournal of Law Economics & Organization, 30
-
Ricardo Caballero, M. Hammour (1996)
The Macroeconomics of SpecificityJournal of Political Economy, 106
-
Luis Garicano, Claire Lelarge, J. Reenen (2013)
Firm Size Distortions and the Productivity Distribution: Evidence from FranceEuropean Economics: Labor & Social Conditions eJournal
-
W. Macleod, J. Malcomson (1989)
Implicit Contracts, Incentive Com-patibility, and Involuntary Unemployment -
Daniel Kaufmann, Aart Kraay, Massimo Mastruzzi (2006)
Governance Matters V: Aggregate and Individual Governance Indicators for 1996-2005World Bank Policy Research Working Paper Series
-
Parikshit Ghosh, Debraj Ray (1996)
Cooperation in Community Interaction Without Information Flows -
P. Legros, A. Newman (2012)
A Price Theory of Vertical and Lateral Integration (Revised Version)Microeconomics: Production
-
Gian Clementi, Hugo Hopenhayn (2002)
A Theory of Financing Constraints and Firm DynamicsIO: Firm Structure
-
Dilip Abreu (1988)
On the Theory of Infinitely Repeated Games with DiscountingEconometrica, 56
-
Alfred Chandler (1962)
Strategy and Structure: Chapters in the History of the Industrial Enterprise -
Benjamin Moll (2014)
Productivity Losses from Financial Frictions: Can Self-Financing Undo Capital Misallocation?The American Economic Review, 104
-
John Asker, Allan Collard-Wexler, Jan Loecker (2011)
Productivity Volatility and the Misallocation of Resources in Developing EconomiesMicroeconomics: Production
-
James Hamilton (2008)
Understanding Crude Oil PricesNBER Working Paper Series
-
C. Bull (1987)
The Existence of Self-Enforcing Implicit ContractsQuarterly Journal of Economics, 102
-
R. Lucas (1978)
On the Size Distribution of Business FirmsThe Bell Journal of Economics, 9
-
E. Penrose (1960)
The theory of the growth of the firm twenty-five years after -
Jeffrey Frankel, Laura Alfaro, Andrew Charlton, Fabio Kanczuk (2009)
Chapter Title : Plant Size Distribution and Cross-Country Income Differences -
Suehyun Kwon (2016)
Relational contracts in a persistent environmentEconomic Theory, 61
-
Ene, G. M., Rossman (2004)
INTEGRATION VERSUS OUTSOURCING IN INDUSTRY EQUILIBRIUM -
Diego Restuccia, Richard Rogerson (2008)
Policy distortions and aggregate productivity with heterogeneous establishmentsReview of Economic Dynamics, 11
-
Marina Halac (2011)
Relational Contracts and the Value of RelationshipsColumbia Business School Research Paper Series
-
Thor Hultgren (1960)
Front Matter to "Changes in Labor Cost During Cycles in Production and Business" -
A. Banerjee, E. Duflo (2004)
Growth Theory Through the Lens of Development EconomicsDevelopment Economics
-
P. Aghion, N. Bloom, Brian Lucking, R. Sadun, J. Reenen (2017)
Turbulence, Firm Decentralization and Growth in Bad TimesManagement of Innovation eJournal
-
J. Mcmillan, C. Woodruff (1998)
Interfirm Relationships and Informal Credit in VietnamInstitutional & Transition Economics eJournal
-
(2011)
The Life Cycle of Plants in India and Mexico -
M. Ayyagari, Asli Demirgüç-Kunt, T. Beck (2003)
Small and Medium Enterprises Across the Globe: A New DatabaseEntrepreneurship & Economics eJournal
-
N. Bloom, R. Sadun, J. Reenen (2009)
The Organization of Firms Across CountriesEwing Marion Kauffman Foundation Research Paper Series
-
Simeon Djankov, R. Porta, Florencio Silanes, Andrei Shleifer (2002)
Courts: The Lex Mundi ProjectNegotiation & Dispute Resolution eJournal
-
E. Seligman, Alberto Zorli (1886)
The Quarterly Journal of Economics.@@@Giornale degli Economisti.Political Science Quarterly, 1
-
(1968)
The Matthew e¤ect in science -
David Berger (2012)
Countercyclical Restructuring and Jobless Recoveries -
P. Aghion, S. Durlauf (2005)
Handbook of Economic Growth -
A. Banerjee, Benjamin Moll (2010)
Why Does Misallocation PersistAmerican Economic Journal: Macroeconomics, 2
-
Yin-Wong Cheung, K. Lai (2000)
On the purchasing power parity puzzleJournal of International Economics, 52
-
Yuk-fai Fong, Jin Li (2017)
Relational contracts, limited liability, and employment dynamicsJ. Econ. Theory, 169
-
David Kreps (2003)
Relational Incentive Contracts -
Simon Board, Moritz Meyer-ter-Vehn (2015)
Relational Contracts in Competitive Labour MarketsThe Review of Economic Studies, 82
-
R. Gibbons, Rebecca Henderson (2011)
Relational Contracts and Organizational CapabilitiesMotivation
-
M. Baily, E. Bartelsman, J. Haltiwanger (1996)
Labor Productivity: Structural Change and Cyclical DynamicsReview of Economics and Statistics, 83
-
D. Martimort, T. Verdier (2004)
The Agency Cost of Internal Collusion and Schumpeterian GrowthThe Review of Economic Studies, 71
-
P. Craig (1932)
CourtsThe Prison Journal, 12
-
E. Bartelsman, J. Haltiwanger, S. Scarpetta (2009)
Cross-Country Differences in Productivity: The Role of Allocation and SelectionIO: Productivity
-
Matthias Kehrig (2015)
The Cyclical Nature of the Productivity DistributionMicroeconomics: Production
-
James Gwartney, Robert Lawson (2007)
Economic Freedom of the World: 2007 Annual Report -
Kenneth Rogoff (1996)
The Purchasing Power Parity PuzzleJournal of Economic Literature, 34
-
Kalina Manova (2008)
Credit Constraints, Heterogeneous Firms, and International TradeSPGMI: Compustat Fundamentals (Topic)
-
Sylvain Chassang (2010)
Building Routines: Learning, Cooperation, and the Dynamics of Incomplete Relational ContractsThe American Economic Review, 100
-
Hugo Hopenhayn (1992)
Entry, exit, and firm dynamics in long run equilibriumEconometrica, 60
-
Michael Peters (2011)
Heterogeneous Mark-Ups and Endogenous Misallocation -
Rocco Macchiavello, A. Morjaria (2015)
Competition and Relational Contracts: Evidence from Rwanda's Coffee Mills -
J. Growiec, F. Pammolli, M. Riccaboni, H. Stanley (2008)
On the Size Distribution of Business FirmsIO: Empirical Studies of Firms & Markets
-
Paul Armington (1969)
A Theory of Demand for Products Distinguished by Place of Production (Une théorie de la demande de produits différenciés d'après leur origine) (Una teorÃa de la demanda de productos distinguiéndolos según el lugar de producción), 16
-
Rocco Macchiavello, A. Morjaria (2013)
The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose ExportsInternational Trade eJournal
-
G. Olley, A. Pakes (1992)
The Dynamics of Productivity in the Telecommunications Equipment Industry -
Hyeok Jeong, R. Townsend (2005)
Sources of TFP growth: occupational choice and financial deepeningEconomic Theory, 32
-
R. Albuquerque, Hugo Hopenhayn (2002)
Optimal Lending Contracts and Firm DynamicsIndustrial Organization & Regulation eJournal
-
J. Tybout (1998)
Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?IRPN: Diffusion Channels (Topic)
-
Chang-tai Hsieh, Peter Klenow (2007)
Misallocation and Manufacturing TFP in China and IndiaU.S. Census Bureau Center for Economic Studies Research Paper Series
-
P. Aghion, N. Bloom, Brian Lucking, J. Reenen (2015)
Growth and Decentralization in Bad Times Preliminary -
Laura Alfaro, P. Conconi, Harald Fadinger, A. Newman (2010)
Do Prices Determine Vertical Integration?International Trade eJournal
-
R. Gibbons, Richard Holden, M. Powell (2012)
Organization and Information: Firms’ Governance Choices in Rational-Expectations Equilibrium*Quarterly Journal of Economics, 127
-
R. Porta, Florencio Silanes, Andrei Shleifer (1998)
Corporate Ownership Around the WorldCorporate Finance and Organizations eJournal
-
J. Gaĺı, Thijs Rens (2014)
The Vanishing Procyclicality of Labor ProductivityMacroeconomics: Aggregative Models eJournal
-
(2011)
Why Do Ine¢ cient Firms Survive? Management and Economic Development -
Nezih Guner, G. Ventura, Yi Xu (2007)
Macroeconomic Implications of Size-Dependent PoliciesMacroeconomics eJournal
-
Thomas Cooley, R. Marimon, Vincenzo Quadrini (1999)
Aggregate Consequences of Limited Contract EnforceabilityJournal of Political Economy, 112
-
C. Syverson (2010)
What Determines Productivity?ERN: Productivity (Topic)
-
L. Foster, J. Haltiwanger, C. Syverson (2005)
Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability?Organizations & Markets eJournal
-
Thor Hultgren (1962)
Appendices to "Changes in Labor Cost During Cycles in Production and Business" -
R. Gibbons, John Roberts (2012)
The Handbook of Organizational Economics -
Daniel Kaufmann, Aart Kraay, Massimo Mastruzzi (2006)
Governance Matters VIII: Aggregate and Individual Governance Indicators, 1996-2008Development Economics
-
Jin Li, Niko Matouschek, M. Powell (2017)
Power Dynamics in OrganizationsAmerican Economic Journal: Microeconomics, 9
-
D. Acemoglu, Pol Antràs, E. Helpman (2007)
Contracts and Technology AdoptionThe American Economic Review, 97
-
K. Burdett (1996)
Truncated means and variancesEconomics Letters, 52
-
Francisco Buera, Joseph Kaboski, Yongseok Shin (2009)
Finance and Development: A Tale of Two SectorsS&P Global Market Intelligence Research Paper Series
-
C. Shapiro, J. Stiglitz (1984)
Equilibrium Unemployment as a Worker Discipline DeviceThe American Economic Review, 74
-
Daniel Barron, M. Powell (2014)
Policy Commitments in Relational Contracts -
Matthias Kehrig (2011)
The Cyclicality of Productivity Dispersion -
N. Bloom, R. Sadun, J. Reenen (2016)
Management as a Technology?Kauffman: Large Research Projects (Topic)
-
Jonathan Levin (2002)
Multilateral Contracting and the Employment RelationshipQuarterly Journal of Economics, 117
-
A. Banerjee, E. Duflo (2005)
Chapter 7 Growth Theory through the Lens of Development Economics, 1
-
Marianne Bertrand, S. Mullainathan (2001)
Are CEOs Rewarded for Luck? The Ones Without Principals AreQuarterly Journal of Economics, 116
-
L. Laeven, C. Woodruff (2004)
The Quality of the Legal System, Firm Ownership, and Firm SizeThe Review of Economics and Statistics, 89
-
(2007)
Measuring and Explaining Management Practices Across Firms and Countries -
N. Bloom, Benn Eifert, A. Mahajan, D. McKenzie, J. Roberts (2011)
Does Management Matter? Evidence from IndiaBehavioral & Experimental Economics eJournal
-
P. Diamond, J. Mirrlees (1971)
Optimal Taxation and Public Production I: Production Efficiency, II: Tax Rules -
Daniel Barron, M. Powell (2019)
Policies in Relational ContractsAmerican Economic Journal: Microeconomics
-
Mark Doms, E. Bartelsman (2000)
Understanding Productivity: Lessons from Longitudinal MicrodataIO: Productivity
-
Elchanan Ben-Porath, Eddie Dekel, Barton Lipman (2013)
A Price Theory of Vertical and Lateral Integration -
P. Francois, Joanne Roberts (2003)
Contracting productivity growthThe Review of Economic Studies, 70
-
Jonathan Levin (2003)
Relational Incentive ContractsThe American Economic Review, 93
-
John Asker, Allan Collard-Wexler, Jan Loecker (2014)
Dynamic Inputs and Resource (Mis)AllocationJournal of Political Economy, 122
-
(2003)
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity -
X. Gabaix (2009)
The Granular Origins of Aggregate FluctuationsMacroeconomics: Aggregative Models eJournal
-
Yanhui Wu (2017)
Incentive Contracts and the Allocation of TalentCorporate Finance: Governance
-
Josef Schroth (2015)
Optimal Intermediary RentsBanking & Insurance eJournal
-
James Gwartney, R. Lawson, Joshua Hall (2013)
Economic freedom of the world -
W. Fuchs (2006)
Contracting with Repeated Moral Hazard and Private EvaluationsMicroeconomic Theory eJournal
-
Virgiliu Midrigin, D. Xu (2010)
Finance and Misallocation: Evidence from Plant-Level DataCorporate Finance: Valuation
-
(2011)
Relational Contracts, Managerial Practices, and Organizational Capabilities,Handbook of Organizational Economics, eds -
Hsiu-Khuern Tang, Chuen-Teck See (2009)
Variance inequalities using first derivativesStatistics & Probability Letters, 79
- Publisher
- Wiley
- Copyright
- "© 2019 The RAND Corporation"
- ISSN
- 0741-6261
- eISSN
- 1756-2171
- DOI
- 10.1111/1756-2171.12264
- Publisher site
- See Article on Publisher Site
Abstract
I analyze a model of production in a competitive environment with heterogeneous firms. Efficient production requires individuals within the organization to take noncontractible actions for which rewards must be informally promised rather than contractually assured. The credibility of such promises originates from a firm's future competitive rents. In equilibrium, heterogeneous firms are heterogeneously constrained, and competitive rents are inefficiently concentrated at the top. I explore several policy and empirical implications of this result.
Journal
The Rand Journal of Economics – Wiley
Published: Mar 1, 2019