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The Positive Economics of Corporatism and Corporate Governance

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  • Rainer Fehn
  • Carsten-Patrick Meier
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    Abstract

    This paper presents a positive model which shows that institutional setups on capital and labor markets might be intertwined by politicoeconomic forces. Two politicoeconomic equilibria arise from our model, one with little protection of insiders on capital and labor markets, and another one with an institutional bias toward favoring insiders on both markets. Coherent and relatively homogeneous societies, where binding commitments enjoy greater feasability, are more likely to be found in the latter, corporatist equilibrium, whereas fragmented, heterogeneous Anglo-Saxon societies fit better into the former category. These predictions of the model receive considerable support in our cross-country empirical analysis, thus being potentially important for the current debates concerning the reforms of labor markets and of corporate governance systems.

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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 982.

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    Length: 30 pages
    Date of creation: May 2000
    Date of revision:
    Handle: RePEc:kie:kieliw:982

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    Related research

    Keywords: Corporatism; Labor Markets; Corporate Governance; Political Economy; Shareholder Protection;

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    References

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    6. Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084 Elsevier.
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    16. Berthold, Norbert & Fehn, Rainer & Thode, Eric, 1999. "Falling labor share and rising unemployment: long-run consequences of institutional shocks?," Wirtschaftswissenschaftliche Beiträge 30, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
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    Citations

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    Cited by:
    1. Ansgar Belke & Rainer Fehn, 2001. "Institutions and Structural Unemployment: Do Capital-Market Imperfections Matter?," CESifo Working Paper Series 504, CESifo Group Munich.
    2. Fehn, Rainer, 2001. "Institutioneller Wettbewerb und soziale Sicherungssysteme in Europa," Wirtschaftswissenschaftliche Beiträge 45, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
    3. Fehn, Rainer, 2001. "Korporatismus auf dem Arbeitsmarkt und institutionelle Rahmenbedingungen auf dem Kapitalmarkt: zwei Seiten ein- und derselben Medaille?," Wirtschaftswissenschaftliche Beiträge 46, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
    4. Berthold, Norbert & Fehn, Rainer, 2000. "Arbeitsmarktpolitik in der Europäischen Währungsunion," Wirtschaftswissenschaftliche Beiträge 38, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
    5. Nuria Alcalde Fradejas & Inés Pérez-Soba Aguilar, 2007. "Influencia de las ofertas públicas de adquisición sobre el empleo de las empresas adquiridas: un análisis empírico," Investigaciones Economicas, Fundación SEPI, vol. 31(1), pages 5-42, January.

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