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This paper describes a search model with a continuum of worker and job types, transferable utility and an increasing returns to scale contact technology. We apply a second order Taylor expansion to characterize the equilibrium. One third of the increasing returns in contacts are absorbed by...
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Consider a principal who appoints an agent. Let the agent potentially serve for a sufficiently long time that one principal is replaced by another over this period. Suppose also that the quality of the agent appointed increases with the effort the incumbent principal devotes to hiring. Then the...
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Recruitment is often delegated to senior employees. Delegated recruitment, however, is vulnerable to moral hazard … relates to the candidates' 'type'. Delegation is then superior to direct (owner) recruitment and offering 'tenure' or … guaranteed seniority to the senior employee is neither always desirable for the owner nor necessary to ensure good recruitment …
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The paper discusses key elements of optimal central bank design and applies its findings to the Eurosystem. A particular focus is on the size of monetary policy committees, the degree of centralization, and the representation of relative economic size in the voting rights of regional (or...
Persistent link: https://www.econbiz.de/10003304189