Showing 1 - 10 of 196
We study regulation of the auditing profession in a model where audit quality is unobservable and enforcing regulation is costly. The optimal audit standard falls short of the first-best audit quality, and is increasing in the riskiness of firms and in the amount of funding they seek. The model...
Persistent link: https://www.econbiz.de/10013317070
this incentive mechanism is reinvigorated after a management change – but only when the team is sufficiently homogenous …. Indeed, we find substantial evidence that coach replacements enhance team performance (only) in homogenous teams. Moreover …
Persistent link: https://www.econbiz.de/10013100003
Collective contests are examined permitting heterogeneity of stakes within every competing group. Our first concern is whether unequal distribution of stakes in a group can enhance its win probability. Our second concern is whether a large stake in a group can be individually disadvantageous. We...
Persistent link: https://www.econbiz.de/10013086980
observable. A team incentive scheme, where each agent is paid a bonus for aggregate output above a threshold, is optimal in case … (a). The team's efficiency may increase considerably with size if outputs are negatively correlated. Under (b) a … performance. The two cases reveal that it may be optimal to organize production as a team where only aggregate output is …
Persistent link: https://www.econbiz.de/10013053067
Between and within firms, work teams compete against each other and receive feedback on how well their team is … feedback (RPF) at team level. We find that when subjects work under team incentives, then RPF on team performance increases the … experiment suggests that top performers are particularly motivated by the combination of team incentives and team RPF. In fact …
Persistent link: https://www.econbiz.de/10012924345
tasks. We analyze the effects of the salience of incentives in a team production setting where the principal has an interest …, reduces quality, and increases in-pocket income of team managers …
Persistent link: https://www.econbiz.de/10013315929
Improving public sector workforce quality is challenging in sectors such as education where worker productivity is difficult to assess and manager incentives are muted by political and bureaucratic constraints. In this paper, we study how providing information to principals about teacher...
Persistent link: https://www.econbiz.de/10012977256
We analyze the relationship between legal institutions, innovation and growth. We compare a rigid (law set ex-ante) legal system and a flexible one (law set after observing current technology). The flexible system dominates in terms of welfare, amount of innovation and output growth at...
Persistent link: https://www.econbiz.de/10013067864
The frequency with which firms adjust output prices helps explain persistent differences in capital structure across firms. Unconditionally, the most exible-price firms have a 19% higher long-term leverage ratio than the most sticky-price firms, controlling for known determinants of capital...
Persistent link: https://www.econbiz.de/10012962123
Does temperature affect economic performance? Has temperature always affected social welfare through its impact on physical and cognitive function? While many studies have explored the indirect links between climate and welfare (e.g. agricultural yield, violent conflict, or sea-level rise), few...
Persistent link: https://www.econbiz.de/10013056824