The authors combine the agency theory of the firm with risk diversification incentives for insiders. Principal …

This paper proposes a theory to explain why a politician delegates policy tasks to a technocrat in an independent … opinion. One natural application of the theory is in the field of monetary policy where the model provides a new theory of …

This paper proposes a theory to explain why a politician delegates policy tasks to a technocrat in an independent … opinion. One natural application of the theory is in the field of monetary policy where the model provides a new theory of …

We propose a theory to explain why, and under what circumstances, a politician delegates policy tasks to a technocrat … in an independent institution, and analyze under what conditions delegation is optimal for society. Our theory builds on … natural application of our framework leads to a new theory of central bank independence …

, along with this foundational purpose, the parens patriae doctrine also provides power that is illusive to public knowledge … and oversight. To maintain their cloak of power, the very agencies created to fulfill the parens patriae obligations — to … article describes the conflict between parens patriae purpose and power in its historical, theoretical, and practical context …