We discuss how specifications of interdependent preferences found in the literature yield biased estimates of parameters of the underlying consumption or choice models. We present new specifications which alleviate this problem and permit an estimation of the size of the reference group. This...

We apply agency theory to the payroll records of a copper mine that paid a production bonus to teams of workers. As with most incentive pay used by firms, the bonus was simpler in form than the optimal contract that balances incentives, insurance, and free-riding. We explore whether transactions...

We examine the reliability of alternative output detrending methods, with special attention to the accuracy of real-time estimates of the output gap. We show that ex post revisions of the estimated gap are of the same order of magnitude as the estimated gap itself and that these revisions are...

I examine the case where fulfillment of a contractual commitment is only imperfectly verifiable and ask whether the court should then "tell the truth"" regarding the action in dispute. I show that truth seeking does not maximize the expected surplus from contractual relationships. From the...

This paper analyzes the incentive properties of the standard and burden of proof for a finding of negligence, when evidence about injurers' behavior is imperfect and rests with the parties. We show that the `preponderance of evidence' standard used in common law, together with ordinary exclusion...

There is a long history of models attempting to identify the causes of corruption, yet empirical analysis is complicated. Not only is data difficult to obtain and often available only for few countries and a limited number of years, but such estimation involves inherent complexities. This paper...

We argue that the common law standard of proof, given the rules of evidence, does not minimize expected error as usually argued in the legal literature, but may well be efficient from the standpoint of providing maximal incentives for socially desirable behavior. By contrast, civil law's higher...

The objective of this paper is to analyze the school-to-work transition process of young Canadians, particularly individuals with low levels of education, and to situate it in the context of the evolution in the value of a high school diploma over the 1981-1996 period, conditional on not...

The objective of this paper is to analyze the school-to-work transition process of young Canadians, particularly individuals with low levels of education, and to situate it in the context of the evolution in the value of a high school diploma over the 1981-1996 period, conditional on not...

This paper analyzes the evolution of the labour market participation rate of men and women age 15 to 24 from 1976 to 1998. The0501n question being asked is why youth participation rates fell precipitously during the 1990s? We look at two dimensions of this decline: changes in the participation...