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This paper analyses the empirical determinants of contract length, a key andyet neglected dimension of contractual … structure. I estimate contract length andcontract type jointly using original data on tenancy agreements signed between1870 and … 1880 in the district of Siracusa, Italy.The findings indicate that the choice of contract length is driven by theneed to …
Persistent link: https://www.econbiz.de/10005870994
We analyze optimal contracts and optimal matching patterns in a simple model of partnershipwhere there is a double-sided moral hazard problem and potential partners differ intheir productivity in two tasks. It is possible for one individual to accomplish both tasks (soleproduction) and there are...
Persistent link: https://www.econbiz.de/10008860709
This paper analyzes the theoretical underpinnings of high-frequency repayment, a featurein nearly all microfi…nance contracts that has been largely overlooked by theorists. The pervasive belief among practitioners that frequent repayment is critical in achieving high repaymentrates is puzzling....
Persistent link: https://www.econbiz.de/10008860716
This paper analyzes the role of public and private responsibility in the provision of publicgoods. We emphasize that a typical public good will require many different inputs whichraises the possibility of partnerships to exploit comparative advantages of different parties.But hold-up problems...
Persistent link: https://www.econbiz.de/10008860718
We show that the joint liability lending contracts derived in Ghatak (2000) violate an ex post incentive-compatibility constraint which says the amount of joint liability cannot exceed the amount of individual liability. We derive and characterize optimal separating joint liability contracts...
Persistent link: https://www.econbiz.de/10008911469