Optimal contract, imperfect output observation, and limited liability
Article Abstract:
A standard adverse selection model is analyzed to determine an optimal incentive scheme for agents with contracts that are imperfectly observed. The imperfect observation of the output of optimal contracts may result to several changes in the status of said contracts. Statistical results indicate that highly-productive agents may be required to exert efforts lower that the one required for low-productivity agents.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Optimal fiscal and monetary policy under sticky prices
Article Abstract:
The optimal fiscal and monetary policy under sticky prices whose stickiness is related to the ability of the government to make non-state contingent liabilities to state contingent in real terms is reviewed. Price stickiness induces deviation from the Friedman rule.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2004
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The political economy of public savings and the role of capital mobility
- Abstracts: Long-run effects of APEC trade liberalisation: an applied general equilibrium analysis. A CGE approach to modelling carbon dioxide emissions control in Canada and the United States
- Abstracts: Trade policy in South Asia: recent liberalisation and future agenda. part 2 Anti-dumping duty versus price negotiations
- Abstracts: Leveled commitment contracts with myopic and strategic agents. Convergence to symmetry in dynamic strategic models of R&D; The undiscounted case
- Abstracts: Small Earthquake in Japan. The Secret Is to Think Big and Act Small. Small Room at the Top