infonet-economy

We take up the recent discussion about institutions, governance and geography. The main result of this debate is that institutions matter, be they the fundamental cause of growth or not. We first discuss economic institutions safeguarding economic freedom, including the role of
the judiciary, then political institutions, especially democracy. While there is a large consensus…

This paper provides theory and firm-level evidence on the incorporation decision of entrepreneurs in a model of corporate governance and taxation. The theory explains how the incorporation decision of entrepreneurs is driven by taxation (corporate and personal income taxes), corporate transparency, access to external capital and limited liability. We estimate features of this model…

The authors advocate building a bridge between two systems approaches, namely system dynamics (SD) and the viable system model (VSM), which is the main exponent of organizational cybernetics (OC). Such a synthesis is aimed at opening a path towards a better capability of actors to deal with complex issues in both organizations and society. Given their respective strengths - modeling…

Through the lens of stakeholder theory this text deepens our understanding of financial and nonfinancial performance outcomes in family firms across multiple stakeholder categories, including the family level of analysis. Based on this foundation, we develop a typology of performance relationships between performance outcomes: overlapping, causal, synergistic, and substitutional. We…

The paper compares the impact of corporate taxation and social insurance on foreign direct investment (FDI) and unemployment. Four main results are derived: (i) the optimal size of the welfare state depends on the degree of risk-aversion and the unemployment rate as a measure of labor income risk. The unemployment rate partly reflects the country's exposure to globalization; (ii…

The purpose of this contribution is to make the idea of modeling as theory-building operational. We conceive the modeling process as a theory-building process, thereby opening up a new perspective on the methodology of modeling in the social sciences. By reconceptualizing the notion of modeling, we hope to convey the advantages of more conceptual thinking in management. Practitioners…