, monitoring and pay are shown to be complementary instruments under very general conditions, extending earlier results by Allgulin …

This paper analyzes policies for regulating polluting firms under imperfect monitoring. The main finding is that a …' emission levels, and these are less powerful than the best non-linear incentive schemes. Another result is that monitoring and …

The shirking model of efficiency wages has been thought to imply that monitoring and pay are substitute instruments for … effort - for example that there are only two possible effort levels. Under more reasonable assumptions, monitoring and pay … workers' rents. Finally, much of the empirical literature on the monitoring-pay relationship is shown to be seriously …