INEQUALITY, INCOMPLETE CONTRACTS, AND THE SIZE DISTRIBUTION OF BUSINESS FIRMS

• 成果类型: Article
• 署名作者: Gall, Thomas
• 署名单位: University of Bonn
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2010.00582.x
• 发表日期: 2010
• 页码: 335-364
• 关键词: DEVELOPING-COUNTRIES; occupational choice; selection; EVOLUTION; wages; MODEL; core; game

摘要

This article analyzes the effects of intrafirm bargaining on the formation of firms in an economy with imperfect capital markets and contracting constraints. In equilibrium, wealth inequality induces a heterogeneous distribution of firm sizes, allowing for firms both too small and too large in terms of technical efficiency. The findings connect well to empirical facts such as the missing middle of firm-size distributions in developing countries. The model can encompass a nonmonotonic relationship between aggregate output and inequality. It turns out that an inflow of capital may indeed decrease output in absolute terms.