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Project Evaluation and Organizational Form

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  • Gehrig, Thomas
  • Régibeau, Pierre
  • Rockett, Katharine

Abstract

This paper analyses the impact of inequality on growth when technical progress is driven by innovations. It is assumed that consumers have hierarchic preferences. As a result inequality affects demand and therefore the incentive to innovate. Whether more inequality is harmful or beneficial for growth depends on the initial distribution. Complementarities between a technical and a pecuniary externality resulting from the innovation process may generate multiple equilibria. Redistribution may push an economy trapped in underdevelopment to a high-growth regime.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1888.

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Date of creation: May 1998
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Handle: RePEc:cpr:ceprdp:1888

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Related research

Keywords: imperfect communication; Imperfect Information; organizational form;

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Cited by:
  1. Ioannides, Yannis M., 2012. "Complexity and organizational architecture," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 193-202.
  2. Peter-J. Jost & Frauke Lammers, 2009. "The organization of project evaluation under competition," Review of Managerial Science, Springer, vol. 3(2), pages 141-155, July.
  3. Rodrigo J. Harrison & Roberto Munoz, 2003. "Stability and Equilibrium Selection in a Link Formation Game," Game Theory and Information 0306004, EconWPA.
  4. Rodrigo Harrison & Roberto Munoz, 2003. "Global Games with Strategic Substitutes," Working Papers gueconwpa~03-03-07, Georgetown University, Department of Economics.

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