Coordination failures and government policy: A model with applications to East Asia and Eastern Europe
构建模型解释中等收入国家因协调问题可能陷入低工资、低技术均衡，并论证投资补贴或最低工资政策能推动经济转向更优均衡，对东亚和东欧有应用价值。
Poor countries must specialize in standardized, labor-intensive commodities. Middle-income countries may have a richer menu of options if their labor force is reasonably well educated and skilled. The multiplicity of equilibria is due to a coordination problem inherent in activities that require specialized inputs. If no intermediate inputs are presently produced, there may be little incentive for any single firm to do so on its own. The economy may get stuck in a low-wage, low-tech equilibrium. An investment subsidy or a minimum-wage policy can enhance welfare by moving the economy to a superior equilibrium.