This paper analyzes the links between the internal organization of firms and macroeconomic growth. We present a Schumpeterian growth model in which firms face dynamic agency costs. These agency costs are due to the formation of vertical collusions within the organization. To respond to the opportunity of internal collusion, firms go through a whole life cycle, getting more bureaucratized and less efficient over time.
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Paper provided by Laval - Laboratoire Econometrie in its series Papers with number
1999-09.
Find related papers by JEL classification: D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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