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Hege, U.; Viala, P. - Tilburg University, Center for Economic Research - 1997

may be ex ante efficient. This happens through costly legal dispute which arises when contract terms are missing for the … undesirable outcomes. We show that an optimal contract needs only to specify the obligation for the more litigious party to assure …

Persistent link: https://www.econbiz.de/10011090951

Trust in the Shadow of the Courts

Brennan, G.; Güth, W.; Kliemt, H. - Tilburg University, Center for Economic Research - 1997

If contract enforcers must be randomly selected from the same population and thus are as opportunistic as ordinary …

Persistent link: https://www.econbiz.de/10011091713

Capital Structure and Managerial Compensation : The Effects of Renumeration Seniority

Renneboog, Luc; Calcagno, R. - Tilburg University, Center for Economic Research - 2004

debt changes the incentive to provide the manager with stronger performance-related incentives ("contract substitution …

Persistent link: https://www.econbiz.de/10011092094

Stochastic Mechanisms and Quasi-Linear Preferences

boone, jan; Schottmuller, C. - Tilburg University, Center for Economic Research - 2012

Abstract: Many optimal contracting papers use quasi-linear preferences. To exclude stochastic mechanisms they impose a (sufficient) condition on how the curvature of an agent's objective function varies with type. We show with quasi-linear preferences that an optimal deterministic outcome...

Persistent link: https://www.econbiz.de/10011092726

Debt Contracts, Collapse and Regulation as Competition Phenomena

Gersbach, H.; Uhlig, H.F.H.V.S. - Tilburg University, Center for Economic Research - 1998

may make the lending altogether unprofitable. Second, banks can have an incentive to offer a debt contract and additional … equity contracts to intermediate debtors. This combination, however, is in turn dominated by a simple debt contract that is … to avoid the contract with the highest chance of delivery: that contract attracts all bad entrepreneurs. …

Persistent link: https://www.econbiz.de/10011092395

Employment Duration and Resistance to Wage Reductions : Experimental Evidence

Burda, M.; Güth, W.; Kirchsteiger, G.; Uhlig, H.F.H.V.S. - Tilburg University, Center for Economic Research - 1998

One of the long-standing puzzles in economics is why wages do not fall sufficiently in recessions so as to avoid increases in unemployment. Put differently, if the competitive market wage declines, why don't employers simply force their employees to accept lower wages as well? As an alternative...

Persistent link: https://www.econbiz.de/10011090402

Old Folks and Spoiled Brats : Why the baby Boomers' Saving Crisis Need Not be that Bad

Butler, M.; Harms, P. - Tilburg University, Center for Economic Research - 2001

We study the impact of an anticipated "baby boom" in an overlapping generations economy.The rise of the working population lowers the wage, and the high demand for assets causes a rise in the price of capital which will be reversed when the baby boomers leave the work-force.However, the swings...

Persistent link: https://www.econbiz.de/10011090451

Labor Tax Reform and Equilibrium Unemployment : A Search and Matching Approach

Heijdra, B.J.; Ligthart, J.E. - Tilburg University, Center for Economic Research - 2004

The paper studies simple strategies of labor tax reform in a search and matching model of the labor market featuring endogenous labor supply.Changing the composition of the tax wedge|that is, reducing a payroll tax and increasing a progressive wage tax such that the marginal tax wedge remains...

Persistent link: https://www.econbiz.de/10011090457

Social Interaction and the Minority-Majority Earnings Inequality : Why Being a Minority Hurts but being a big Minority Hurts More

Kahanec, M. - Tilburg University, Center for Economic Research - 2004

Empirical findings that minorities typically attain lower economic status than majorities and that relatively larger minorities perform worse than smaller ones pose a challenge to economics.To explain this scale puzzle, I model an economy where the society is bifurcated into two social groups...

Persistent link: https://www.econbiz.de/10011090782

Effective Labor Market Policies

boone, jan; van Ours, Jan - Tilburg University, Center for Economic Research - 2004

We present a theoretical and empirical analysis of different types of active labor market policies (ALMP).In our empirical analysis we use data on 20 OECD countries covering the time period 1985-1999.We find that labor market training is the most effective program to bring down...

Persistent link: https://www.econbiz.de/10011090817