Using a model with constant relative risk-aversion preferences, endogenous labor supply and partial insurance against … cost associated with missing insurance markets. On the other hand, greater wage dispersion presents opportunities to raise … second moments of the joint distribution over individual wages, consumption and hours …

This paper presents theory and evidence on horizontal industry structure, focusing on situations where plant …

the executive. Agency theory remains the only viable candidate for answering the question about how executive compensation … compensation, in the context of agency theory. We suggest two fertile areas for research regarding the improvement of executive …

this risk. We use our theory to interpret some executive compensation data from the early 1970's. The results are generally …

This paper examines managerial compensation in an environment where managers may take a hidden action that affects the … contract in this setting, and demonstrate that contracts contingent on reported earnings cannot provide managers with the …

incentive to induce managers to pursue actions which increase the speculative component in the stock price. Our model provides a …

The principal-agent model of executive compensation is of central importance to the modern theory of the firm and …

Insurers are the largest institutional investors of corporate bonds. However, a standard theory of insurance markets …

of consumption insurance against shocks to male and female wages, as estimated empirically by Blundell, Pistaferri and … consumption, compared to the empirical estimates of 32% and 19%. Most of the consumption insurance against permanent male wage …-household income insurance mechanism strongly biases upward the welfare losses from idiosyncratic wage risk as well as the desired …