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Optimal Incentives under Moral Hazard and Heterogeneous Agents: Evidence from Production Contracts Data
Dubois, Pierre; Vukina, Tomislav - C.E.P.R. Discussion Papers - 2006
model of an incentive contract under moral hazard, taking into account agents heterogeneity in preferences. We show that … contracting farmers are heterogenous with respect to their risk aversion and that this heterogeneity affects the principal …
Persistent link: https://www.econbiz.de/10005656265
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Bank Finance versus Bond Finance: What Explains the Differences Between the US and Europe?
De Fiore, Fiorella; Uhlig, Harald - C.E.P.R. Discussion Papers - 2005
We present a dynamic general equilibrium model with agency costs, where heterogeneous firms choose between two alternative instruments of external finance - corporate bonds and bank loans. We characterize the financing choice of firms and the endogenous financial structure of the economy. The...
Persistent link: https://www.econbiz.de/10005498089
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Housing Collateral, Credit Constraints and Entrepreneurship - Evidence from a Mortgage Reform
Laerkholm Jensen, Thais; Leth-Petersen, Søren; Nanda, … - C.E.P.R. Discussion Papers - 2014
point increase in entrepreneurship, equivalent to a 4% increase in the number of entrepreneurs. New entrants were more …We study how a mortgage reform that exogenously increased access to credit had an impact on entrepreneurship, using … benefit from the reform. Our results provide evidence that credit constraints do affect entrepreneurship, but that the overall …
Persistent link: https://www.econbiz.de/10011084236
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Hoping to Win, Expected to Lose: Theory and Lessons on Micro Enterprise Development
Karlan, Dean S.; Knight, Ryan; Udry, Christopher - C.E.P.R. Discussion Papers - 2012
catalyze adoption of investments and practices aimed towards enterprise growth. We find that entrepreneurs invest the cash, and … relaxed, and find mixed support for this theory. …
Persistent link: https://www.econbiz.de/10011084680
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Gender Differences in Risk Behaviour: Does Nurture Matter?
Booth, Alison L; Nolen, Patrick - C.E.P.R. Discussion Papers - 2009
Women and men may differ in their propensity to choose a risky outcome because of innate preferences or because pressure to conform to gender-stereotypes encourages girls and boys to modify their innate preferences. Single-sex environments are likely to modify students' risk-taking preferences...
Persistent link: https://www.econbiz.de/10005082546
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Matching Firms, Managers, and Incentives
Bandiera, Oriana; Guiso, Luigi; Prat, Andrea; Sadun, … - C.E.P.R. Discussion Papers - 2009
managers are heterogeneous. Following the sources of heterogeneity observed in the data, we assume that firms differ by …
Persistent link: https://www.econbiz.de/10005662350
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Prudence in Bargaining: The Effect of Uncertainty on Bargaining Outcomes
White, Lucy - C.E.P.R. Discussion Papers - 2006
We investigate the outcome of bargaining when a player’s pay-off from agreement is risky. We find that a risk-averse player typically increases his equilibrium receipts when his pay-off is made risky. This is because the presence of risk makes individuals behave 'more patiently' in bargaining....
Persistent link: https://www.econbiz.de/10005666445
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Preferences, Consumption Smoothing, and Risk Premia
Lettau, Martin; Uhlig, Harald - C.E.P.R. Discussion Papers - 1997
Risk premia in the consumption capital asset pricing model depend on preferences and dividends. We develop a decomposition which allows for the separate treatment of both components. We show that preferences alone determine the risk-return trade-off measured by the Sharpe-ratio. In general, the...
Persistent link: https://www.econbiz.de/10005666799
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Monotone Risk Aversion
Nielsen, Lars Tyge - C.E.P.R. Discussion Papers - 1997
This paper shows that a strictly increasing and risk averse utility function with decreasing absolute risk aversion is necessarily differentiable with a positive and absolutely continuous derivative. The cumulative absolute risk aversion function, which is defined as the negative of the...
Persistent link: https://www.econbiz.de/10005788924
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Heterogeneity of Preferences, Limited Commitment and Coalitions: Empirical Evidence on the Limits to Risk Sharing in Rural Pakistan
Dubois, Pierre - C.E.P.R. Discussion Papers - 2006
effects of heterogeneity of preferences and of limited commitment constraints that restrict feasible allocations differently … implications in rural Pakistan taking into account the heterogeneity of households' preferences. Our results show that exogenous …
Persistent link: https://www.econbiz.de/10005791230