Uncertainty, investment and productivity with relational contracts

James Malcomson

Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: This paper shows that, in the presence of relational contracts, an increase in uncertainty with no change in factor prices reduces capital investment and productivity in the long run even if the parties are otherwise risk neutral.

Keywords: General capital; specific capital; investment; relational contracts; risk (search for similar items in EconPapers)
Date: 2021-07-15
New Economics Papers: this item is included in nep-cfn, nep-cta and nep-eff
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Uncertainty, Investment and Productivity with Relational Contracts (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:oxf:wpaper:940

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