NBER Working Paper No. 13907
---- Acknowledgements ----
This paper formed the basis for my Joseph Schumpeter lecture, given at the 22d Annual Congress of the European Economic association in Budapest, August 2007. I am particularly grateful to Jean Tirole, as the paper builds on much of our earlier joint work. I am also grateful for helpful comments to Daron Acemoglu, Rafael Di Tella, Xavier Gabaix, Mohammad Yildiz, Jean-Charles Rochet, Tom Romer, Karl Schlag, and Glen Weyl. Rainer Schwabe provided superb research assistance. Support from the Canadian Institute for Advanced Research is gratefully acknowledged. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.