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The Macroeconomics of Specificity

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  • Ricardo J. Caballero
  • Mohamad L. Hammour

Abstract

Specific quasi-rents build up in a wide variety of economic relationships, and are exposed to opportunism unless fully protected by contract. The recognition that such contracts are often incomplete has yielded major insights into the organization of microeconomic exchange. Rent appropriation, we argue, also has important macroeconomic implications.
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Suggested Citation

  • Ricardo J. Caballero & Mohamad L. Hammour, 1998. "The Macroeconomics of Specificity," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 724-767, August.
    • Handle: RePEc:ucp:jpolec:v:106:y:1998:i:4:p:724-767
    DOI: 10.1086/250028
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    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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