The managerial structures need a powerful instrument for measuring, monitoring and tracking down the key business …

monitoring. We �nd that when disutility of labor is the only unobservable variable, a workfare policy is ine¢ cient because it …, monitoring may be the best instrument for preventing fraud. When income-generating ability is the only unobservable variable …, choosing between workfare and monitoring depends not only on the cost function associated with the latter, but also on income …