Limited enforcement and the organization of production

Erwan Quintin ()

No 109, Working Papers from Federal Reserve Bank of Dallas

Abstract: This paper describes a dynamic, general equilibrium model designed to assess whether contractual imperfections in the form of limited enforcement can account for international differences in the organization of production. In the model, limited enforcement constrains agents to operate establishments below their optimal scale. As a result, economies where contracts are enforced more efficiently tend to be richer and emphasize large scale production. Calibrated simulations of the model reveal that these effects can be large and account for a sizeable part of the observed differences in the size distribution of manufacturing establishments between the United States, Mexico and Argentina.

Keywords: Limited enforcement; organization of production; economic development (search for similar items in EconPapers)
JEL-codes: L23 O11 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2003-04-03
Note: Published as: Quintin, Erwan (2008), "Limited Enforcement and the Organization of Production," Journal of Macroeconomics 30 (3): 1222-1245.
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Limited enforcement and the organization of production (2008)
Working Paper: Limited enforcement and the organization of production (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:feddwp:0109

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