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Heterogeneous Entrepreneurs and Managerial Delegation in an Open Economy

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Authors
Lee, Yang Seung
Issue Date
2021-05
Publisher
Institute of Economic Research, Seoul National University
Citation
Seoul Journal of Economics, Vol.34 No.2, pp. 265-302
Keywords
Entrepreneurial SkillDecentralizationFirm HeterogeneityManagementMonopolistic Competition
Abstract
This study examines the impact of firm-level managerial delegation on aggregate economy. First, managerial delegation demands skilled labor and hence affects the labor market. Second, managerial delegation also affects the product market by improving production efficiency. Managerial delegation incurs costs but does not equally benefit firms. Higher entrepreneurial-skill entrepreneurs are selected, which dramatizes the firm size distribution. These entrepreneurs run larger and more productive firms, and contribute to the aggregate economy by creating higher-paying jobs. This paper provides new implication of trade gain, which is larger for the country where managerial delegation is easier.
ISSN
1225-0279
Language
English
URI
https://hdl.handle.net/10371/174533
DOI
https://doi.org/10.22904/sje.2021.34.2.005
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College of Social Sciences (사회과학대학)Institute of Economics Research (경제연구소)Seoul Journal of EconomicsSeoul Journal of Economics vol.34 no.1~4 (2021)
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