| The three essays in this dissertation, two on defense procurement and one on the consolidation of New York City, explore the relationship between the public sector and the private sector. The two papers on defense procurement look at the institutional constraints surrounding public acquisitions and the problem of selecting an optimal contract type. The strong empirical relationship between cost-plus contracting and contract modification is highlighted. The papers argue that when there is uncertainty and the quality of the contractor's performance is not contractible, cost-plus arrangements and contract modifications can be optimal. The essay on New York City looks at how political decisions, namely the arbitrary division of land into legal jurisdictions, impacts economic growth. In 1898, the City of New York consolidated with four neighboring counties as a means to acquire residential land for its growing ranks of workers and relieve congestion on Manhattan Island. Although the classic monocentric model does not explicitly acknowledge the role of political borders, evidence from New York City suggests that political boundaries have a significant impact on the urban spatial form of the entire metropolitan region. |
