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Does the IMF cause moral hazard and political business cycles? Evidence from panel data
Dreher, Axel; Vaubel, Roland - EconWPA - 2002
Using panel data for 106 countries in 1971-1997, we estimate generalized least squares regressions to explain IMF lending as well as monetary and fiscal policies in the recipient countries. With respect to moral hazard, we find that a country's rate of monetary expansion and its government...
Persistent link: https://www.econbiz.de/10005408180
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Optimal Unemployment Insurance with Variable Skill Levels
Pollak, Andreas - EconWPA - 2004
different productivities or skills, are employed by firms offering wages that depend both on the agents’ individual skill level … contract, periods of unemployment are characterised by declining benefits. Agents are further punished for long unemployment by … reducing expected future utility. A new result obtained from this approach is the observation that under an efficient contract …
Persistent link: https://www.econbiz.de/10005408328
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Dynamic Adjustment of Corporate Leverage: Is there a lesson to learn from the Recent Asian Crisis?
Driffield, Nigel; Mahambare, Vidya; Pal, Sarmistha - EconWPA - 2004
Much of the macro literature on the recent Asian crisis argues that a major cause was over borrowing and over investment encouraged by poor supervision and the resulting moral hazard problem. Surprisingly however there is little firm-level evidence to corroborate this. The present paper examines...
Persistent link: https://www.econbiz.de/10005413165
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Hidden Teacher Effort in Educational Production: Monitoring vs. Merit Pay
Jaag, Christian - EconWPA - 2005
This paper deals with the optimality of teacher incentive contracts in the presence of costly or limited government resources. It considers educational production under asymmetric information as a function of teacher effort and class size. In the presence of costly government resources and...
Persistent link: https://www.econbiz.de/10005076924
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Dynamic Adjustment of Corporate Leverage: Is there a lesson to learn from the Recent Asian Crisis?
Driffield, Nigel; Mahambare, Vidya; Pal, Sarmistha - EconWPA - 2005
While the aggregate macroeconomic analysis of the recent Asian Crisis highlights the moral hazard problem of bad loans in poorly supervised and regulated East Asian economies, there is very little firm-level analysis to characterize it. The present paper attempts to fill in this gap of the...
Persistent link: https://www.econbiz.de/10005076955
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How Ownership Structure Affects Capital Structure and Firm Performance? Recent Evidence from East Asia
Driffield, Nigel; Mahambare, Vidya; Pal, Sarmistha - EconWPA - 2005
Despite the seminal work of Claessens et al. (2002), who highlighted the role of ownership structure on firm performance in East Asia, the relationship between capital structure and ownership remains much unexplored. This is important, given recent empirical and theoretical work linking capital...
Persistent link: https://www.econbiz.de/10005076974
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Evidence on the Incentive Properties of Share Contracts
Braido, Luis H.B. - EconWPA - 2005
choices satisfy profit-maximization conditions; and (iii) the contract form does not affect farm productivity conditional on …
Persistent link: https://www.econbiz.de/10005556067
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IMF Bailouts and Moral Hazard
Lee, Jong-Wha; Shin, Kwanho - EconWPA - 2005
This paper empirically investigates the extent of investor moral hazard associated with IMF bailouts by analyzing the responses of sovereign bond spreads to the changes in the perceived probability of IMF bailouts of countries undergoing financial crisis. We do not find strong evidence that the...
Persistent link: https://www.econbiz.de/10005556610
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Divide and Conquer
Chen, Zhijun - EconWPA - 2005
), which asserts that efficient effort levels are impossible to be implemented through a collusion-proof contract. However, we …
Persistent link: https://www.econbiz.de/10005556789
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A contest with the taxman - The impact of tax rates on tax evasion and wastefully invested resources
Bayer, Ralph C - EconWPA - 2004
We develop a moral hazard model with auditing where both the principal and the agent can influence the probability that the true state of nature is verified. This setting is widely applicable for situations where fraudulent reporting with costly state verification takes place. However, we use...
Persistent link: https://www.econbiz.de/10005556902