Information, Coordination, and the Industrialization of Countries

Englmaier, Florian und Reisinger, Markus (Februar 2006): Information, Coordination, and the Industrialization of Countries. SFB/TR 15 Discussion Paper No. 87

Abstract

The industrialization process of a country is often plagued by a failure to coordinate investment decisions. Using the Global Games approach we can solve this coordination problem and eliminate the problem of multiple equilibria. We show how appropriate information provision enhances efficiency. We discuss extensions of the model and argue that subsidies may be a property of a signalling equilibrium to overcome credibility problems in information provision. In addition we point out possible problems with overreaction to public information. Furthermore, we suggest a new focus for development policy.

• Dokumententyp: Paper
• Keywords: Information, Coordination, Industrialization, Development, Global Games, Equilibrium Refinements, Big Push
• Fakultät: Sonderforschungsbereiche > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems ; Sonderforschungsbereiche > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > C3 - Innovationen in Informationstechnologien und Regulierung von Finanzmärkten ; Volkswirtschaft ; Volkswirtschaft > Lehrstühle > Seminar für Dynamische Modellierung (aufgelöst)
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: C72, C79, D82, F21, O12, O14
• Sprache: Englisch