Paper #212

Títol:

Setting standards: Information accumulation in development

Autors:

Daron Acemoglu i Fabrizio Zilibotti

Data:

Març 1997

Resum:

We propose a model in which economic relations and institutions in advanced and less developed economies differ as these societies have access to different amounts of information. This lack of information makes it hard to give the right incentives to managers and entrepreneurs. We argue that differences in the amount of information arise because of the differences in the scale of activities in rich and poor economies; namely, there is too little repetition of similar activities in poor economies, thus insufficient information to set the appropriate standards for firm performance. Our model predicts a number of institutional and structural transformations as the economy accumulates capital and information.

Paraules clau:

Information, development, agency costs, incentives, relative performance evaluation, risk sharing, sectorial transformations

Codis JEL:

D82, M13, O13, O14, O40

Àrea de Recerca:

Macroeconomia i Economia Internacional

Publicat a:

Journal of Economic Growth, March 1999, vol4, 5-38

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