analysis of contracts under risk, where separation is often feasible. … mitigated by screening contracts that separate informed from uninformed experts. This result stands in contrast with the …

observed contracts. Empirical tests reject the hypothesis of pure risk sharing and a wide range of support for the presence of … risk-sharing and moral hazard is far from settled. Moreover, existing empirical study very often plague by selection … moral hazard problem in the choice of contracts. …

Can the risk of losses upon premature liquidation produce bank runs? We show how a unique run equilibrium driven by … asset liquidity risk arises even under minimal fundamental risk. To study the role of illiquidity we introduce realistic … not available in a run, asset liquidity risk has a concave effect on run incentives, quite unlike fundamental risk. Runs …

averse. The analysis suggests that two-sided risk aversion is important in determining contracts. …The current literature on sharing contracts emphasizes the importance of asymmetric information and typically assumes … that one party is risk neutral while the other is risk averse. This paper describes a real-world contract that is widely …

In a repeated unobserved endowment economy in which agents negotiate long-term contracts with a financial intermediary …, we study the implications of the interaction between incentive compatibility and participation constraints for risk …

This paper studies how the risk of divorce affects the human capital decisions of a young couple. We consider a setting … where complete specialization (one of the spouses uses up all the education resources) is optimal with no divorce risk … symmetric allocation will become more attractive as the probability of divorce increases, if risk aversion is high and/or labor …