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dc.contributor.authorAcemoglu, Daron
dc.contributor.authorAntras, Pol
dc.contributor.authorHelpman, Elhanan
dc.date.accessioned2009-07-27T18:50:15Z
dc.date.issued2007
dc.identifier.citationAcemoglu, Daron, Pol Antras, and Elhanan Helpman. 2007. Contracts and technology adoption. American Economic Review 97(3): 916-943.en
dc.identifier.issn0002-8282en
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:3199063
dc.description.abstractWe develop a tractable framework for the analysis of the relationship between contractual incompleteness, technological complementarities, and technology adoption. In our model, a firm chooses its technology and investment levels in contractible activities by suppliers of intermediate inputs. Suppliers then choose investments in noncontractible activities, anticipating payoffs from an ex post bargaining game. We show that greater contractual incompleteness leads to the adoption of less advanced technologies, and that the impact of contractual incompleteness is more pronounced when there is greater complementary among the intermediate inputs. We study a number of applications of the main framework and show that the mechanism proposed in the paper can generate sizable productivity differences across countries with different contracting institutions, and that differences in contracting institutions lead to endogenous comparative advantage differences.en
dc.description.sponsorshipEconomicsen
dc.language.isoen_USen
dc.publisherAmerican Economic Associationen
dc.relation.isversionofhttp://dx.doi.org/10.1257/aer.97.3.916en
dash.licenseLAA
dc.subjecteconomic growthen
dc.subjecttheory of the firmen
dc.subjectcomparative advantageen
dc.subjecttechnology choiceen
dc.subjectincomplete contractsen
dc.titleContracts and Technology Adoptionen
dc.typeJournal Article
dc.description.versionAccepted Manuscript
dc.relation.journalAmerican Economic Reviewen
dash.depositing.authorAntras, Pol
dc.identifier.doi10.1257/aer.97.3.916*
dash.contributor.affiliatedAntras, Pol
dash.contributor.affiliatedHelpman, Elhanan


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