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Optimal incentive contracts for a worker who envies his boss
Dur, Robert; Glazer, Amihai - 2004
his employer. This paper uses a principalagent model to study optimal incentive contracts for envious workers under … contractible. We discuss several applications of our theoretical work. For example, envy can explain why lower-level workers are …
Persistent link: https://www.econbiz.de/10010261264
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Stochastic Contracts and Subjective Evaluations
Lang, Matthias - 2021
Subjective evaluations are widely used, but call for different contracts from traditional moral-hazard settings …. Previous literature shows that contracts require payments to third parties, which real-world contracts rarely use. I show that … the implicit assumption of deterministic contracts makes payments to third parties necessary. This paper studies …
Persistent link: https://www.econbiz.de/10013311715
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General Equilibrium with Contracts
Kwon, Suehyun - 2016
This paper studies general equilibrium when workers in the economy are also consumers of final goods. Once a firm and a … worker produces, and the price is determined by the total supply and demand in the economy. The worker’s expected utility … equilibria and show that there is a unique equilibrium level of worker’s outside option to price ratio. When the government …
Persistent link: https://www.econbiz.de/10011584962
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Banking regulation and prompt corrective action
Freixas, Xavier; Parigi, Bruno Maria - 2007
We explore the rationale for regulatory rules that prohibit banks from developing some of their natural activities when their capital level is low, as epitomized by the US Prompt Corrective Action (PCA). This paper is built on two insights. First, in a moral hazard setting, capital requirement...
Persistent link: https://www.econbiz.de/10010264241
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A continuous theory of income insurance
Lindbeck, Assar; Persson, Mats - 2010
In this paper we treat an individual's health as a continuous variable, in contrast to the traditional literature on income insurance, where it is regularly treated as a binary variable. This is not a minor technical matter; in fact, a continuous treatment of an individual's health sheds new...
Persistent link: https://www.econbiz.de/10010270506
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How to deal with covert child labour, and give children an effective education, in a poor developing country: An optimal taxation problem with moral hazard
Cigno, Alessandro - 2010
Given that credit and insurance markets are imperfect, and given also that intra-household transfers, and much of the work a child does, are private information, the second-best policy uses a combination of need and merit based education awards, together with a mix of taxes on parental income,...
Persistent link: https://www.econbiz.de/10010270527
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Pension benefit insurance and pension plan portfolio choice
Crossley, Thomas F.; Jametti, Mario - 2008
Pension benefit guarantee policies have been introduced in several countries to protect private pension plan members from the loss of income that would occur if a plan was underfunded when the sponsoring firm terminates a plan. Most of these public insurance schemes face financial difficulty and...
Persistent link: https://www.econbiz.de/10010272309
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Incentive contracts and efficient unemployment benefits
Demougin, Dominique M.; Helm, Carsten - 2009
Several European countries have reformed their labor market institutions. Incentive effects of unemployment benefits have been an important aspect of these reforms. We analyze this issue in a principal-agent model, focusing on unemployment levels and labor productivity. In our model, a higher...
Persistent link: https://www.econbiz.de/10010273802
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Job security and work absence : evidence from a natural experiment
Lindbeck, Assar; Palme, Mårten; Persson, Mats - 2006
.2-0.3 days per year. This aggregate net figure hides important effects on different groups of employees. Workers remaining in the …
Persistent link: https://www.econbiz.de/10010276135
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Social interaction and sickness absence
Lindbeck, Assar; Palme, Mårten; Persson, Mats - 2008
Does the average level of sickness absence in a neighborhood affect individual sickness absence through social interaction on the neighborhood level? To answer this question, we consider evidence of local benefit-dependency cultures. Well-known methodological problems in this type of analysis...
Persistent link: https://www.econbiz.de/10010276141