From inside the firm to the growth process

David Martimort and Thierry Verdier

DELTA Working Papers from DELTA (Ecole normale supérieure)

Abstract: This paper argues that the internal organization of the firm and the growth process interact strongly to determine simultaneously the power of incentives within the firm and the growth rate of the economy. We show how agents within the firm can invest either by using their own human capital or by relying on some form of reputational capital to secure implicit relationships within the firm and we discuss how these investments affect the growth rate of the economy.

Date: 2003
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Journal Article: From Inside The Firm to the Growth Process (2003)
Working Paper: From Inside the Firm to the Growth Process (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:del:abcdef:2003-30

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