This paper develops a model where short-term reputation concerns guide the public disclosure of information and affect welfare in a coordination environment. Entrepreneurs use public information to make investment decisions, and there is complementarity in their actions. There are and high and low states that determine the productivity in the economy, and the high state is more likely if the go...

Studies presented in this paper were supported by funding from the National Institute on Drug Abuse (grant 5–RO1–DA12256), the Administration for Children and Families, and the Robert Wood Johnson Foundation. The 1996 welfare reform law replaced the existing entitlement to cash welfare with a transitional program of temporary aid that has employment as its primary goal. Among the key provisions...