Paarsch, Harry J.; Shearer, Bruce S. - Centre Interuniversitaire de Recherche en Analyse des … - 1997
If policy prescriptions for compensation systems are to be useful, then they must be based on the empirical analysis of … profits under alternative compensation systems. Our results suggest that profits would increase by at least 17 percent were … over a five-month period. We highlight the endogeneity problems inherent in traditional empirical analyses of compensation …