Date of publication: 2017-08-26 21:15
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Relational Contracts, Competition and Innovation: Theory and Evidence from German Car Manufacturers
Giacomo Calzolari , Leonardo Felli , Johannes Koenen , Giancarlo Spagnolo , Konrad Stahl
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We believe that this ratio is an essential tool for measuring a democracy and ideally it should always be equal to one. But in reality, this is never the case. In the USA the ratio of representative wealth to that of the average citizen is close to 95. And in some countries this ratio soars well above 655. This is likely divisive, as the central job requirement of a country's legislators is to control the economy of the nation and rich legislators will clearly approach the economy differently than poor ones. As such, a high ratio is bad news for the contituents, particularly, but not excusively the poor and middle class.
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