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Is Leverage Effective in Increasing Performance Under Managerial Moral Hazard?

Calcagno, R. - Tilburg University, Center for Economic Research - 2000

We consider a model in which the principal-agent relation between inside shareholders and the management affects the firm value.We study the effect of financing the project with risky debt in changing the incentive for a risk-neutral shareholder (the principal) to implement the project-value...

Persistent link: https://www.econbiz.de/10011091167

Delegation of responsibility in organizations

de Bijl, P.W.J. - Tilburg University, Center for Economic Research - 1994

Persistent link: https://www.econbiz.de/10011090447

Regulate or Deregulate : Influencing Network Interconnenction Charges

van de Wielle, B. - Tilburg University, Center for Economic Research - 2003

-and-keep. Delegation corresponds to bargaining about the interconnection charges using the regulatory schemes as disagreement outcomes ….Applying regulation benefits the consumers.Under full regulation, access charges account for asymmetries and allow a unique Ramsey price.Delegation … benefits the operators.In a mature market delegation robs the government of any market influence.In a non-mature market …

Persistent link: https://www.econbiz.de/10011091385

Strategic delegation : An experiment

Fershtman, C.; Gneezy, U. - Tilburg University, Center for Economic Research - 1997

Persistent link: https://www.econbiz.de/10011092164

Basic Versus Supplementary Health Insurance : Moral Hazard and Adverse Selection

boone, jan - Tilburg University, Center for Economic Research - 2014

This paper introduces a tractable model of health insurance with both moral hazard<br/>and adverse selection. We show that government sponsored universal basic insurance should cover treatments with the biggest adverse selection problems. Treatments not covered by basic insurance can be covered on...

Persistent link: https://www.econbiz.de/10011144454

Credit Booms and Lending Standards : Evidence from the Subprime Mortgage Market

Dell’Ariccia, G.; Igan, D.; Laeven, L. - Tilburg University, Center for Economic Research - 2009

This paper links the current subprime mortgage crisis to a decline in lending standards associated with the rapid expansion and changes in the structure of this market. We show that lending standards declined more in areas that experienced faster credit growth. We also find that the entry of new...

Persistent link: https://www.econbiz.de/10011092670

Optimal deterrence of illegal behavior under imperfect corporate governance

Argenton, Cédric; van Damme, Eric - Tilburg University, Center for Economic Research - 2014

We study the optimal design of liability schemes (at the corporate or individual level) when the objective is to deter socially harmful corporate behavior without discouraging productivity enhancements. We assume that firms face agency problems between shareholders and managers (moral hazard)...

Persistent link: https://www.econbiz.de/10011115330

Inequality, Credit Market Imperfection, Segmentation and Economic Growth

Zhu, D. - Tilburg University, Center for Economic Research - 2001

This paper investigates how initial inequality can causally affect economic growth when moral hazard problems exist in credit markets.Two regimes of the credit markets aiming at overcoming the moral hazard problems are analyzed.The formal one such as bank relies on intermediary between borrowers...

Persistent link: https://www.econbiz.de/10011090401

Adverse Selection and Moral Hazard in Anonymous Markets

Klein, Tobias J.; Lambertz, C.; Stahl, K. - Tilburg University, Center for Economic Research - 2013

Abstract: We study the effects of improvements in eBay’s rating mechanism on seller exit and continuing sellers’ behavior. Following a large sample of sellers over time, we exploit the fact that the rating mechanism was changed to reduce strategic bias in buyer rating. That improvement did...

Persistent link: https://www.econbiz.de/10011090420

Separating Moral Hazard from Adverse Selection in Automobile Insurance : Longitudinal Evidence from France

Dionne, G.; Michaud, P.C.; Dahchour, M. - Tilburg University, Center for Economic Research - 2004

This paper uses longitudinal data to perform tests of asymmetric information in the French automobile insurance market for the 1995-1997 period.This market is characterized by the presence of a regulated experience-rating scheme (bonusmalus).We demonstrate that the result of the test depends...

Persistent link: https://www.econbiz.de/10011090444