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Optimal Student Loans and Graduate Tax under Moral Hazard and Adverse Selection

Gary-Bobo, Robert J.; Trannoy, Alain - CESifo - 2013

risky labour-market outcomes, adverse selection, moral hazard and risk aversion. The model combines structured student loans … (redistribution). In separating optima, the talented types bear more risk than the less-talented ones; they arise only if the social …

Persistent link: https://www.econbiz.de/10010668475

A Theory of Crowdfunding - A Mechanism Design Approach with Demand Uncertainty and Moral Hazard

Strausz, Roland - 2016

Crowdfunding provides innovation in enabling entrepreneurs to contract with consumers before investment. Under aggregate demand uncertainty, this improves screening for valuable projects. Entrepreneurial moral hazard and private cost information threatens this benefit. Despite these threats,...

Persistent link: https://www.econbiz.de/10012979605

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/10013142234

Loans, Insurance and Failures in the Credit Market for Students

Del Rey, Elena - 2011

order to provide a rationale for these observations, we present a model with perfectly competitive banks and risk averse … default penalties increase, the level of student risk aversion proves crucial in determining the market outcome. If risk … student risk aversion is high, high ability students are separated and student loan contracts involve a limited amount of …

Persistent link: https://www.econbiz.de/10013127182

Moral Hazard and Bargaining Over Incentive Contracts

Dittrich, Marcus - 2014

This paper analyses bargaining over an incentive compatible contract in a moral hazard framework. We introduce the Kalai-Smorodinsky bargaining solution and compare the outcome with the commonly applied Nash solution. Whether worker's effort is higher in the Nash or the Kalai-Smorodinsky...

Persistent link: https://www.econbiz.de/10013048890

Optimal Student Loans and Graduate Tax Under Moral Hazard and Adverse Selection

Gary-Bobo, Robert - 2013

Persistent link: https://www.econbiz.de/10013080006

Financial Constraints and Moral Hazard : The Case of Franchising

Fan, Ying; Kuhn, Kai-Uwe; Lafontaine, Francine - 2021

Financial constraints are an important impediment to the growth of small businesses. We study theoretically and empirically how the financial constraints of agents affect their decisions to exert effort, and, hence the organizational decisions and growth of principals, in the context of...

Persistent link: https://www.econbiz.de/10013315688

Second-Degree Moral Hazard in a Real-World Credence Goods Market

Balafoutas, Loukas; Kerschbamer, Rudolf; Sutter, Matthias - 2021

Empirical literature on moral hazard focuses exclusively on the direct impact of asymmetric information on market outcomes, thus ignoring possible repercussions. We present a field experiment in which we consider a phenomenon that we call second-degree moral hazard – the tendency of the supply...

Persistent link: https://www.econbiz.de/10013315697

Employee Referral, Social Proximity and Worker Discipline : Theory and Evidence from India

Dhillon, Amrita; Iversen, Vegard; Torsvik, Gaute - 2021

We study an important mechanism underlying employee referrals into informal low skilled jobs in developing countries. Employers can exploit social preferences between employee referees and potential workers to improve discipline. The profitability of using referrals increases with referee stakes...

Persistent link: https://www.econbiz.de/10013315747

Incentive Contracts and Efficient Unemployment Benefits

Demougin, Dominique; Helm, Carsten - 2021

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/10013316365