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Relative performance evaluation in a multi-plant firm

Luporini, Annalisa (contributor) - 2005

We analyze optimal compensation schedules for the directors of two plants belonging to the same owner and producing the same good but serving geographically differentiated markets. Since the outcome of each director depends on his own effort and on a random variable representing market...

Persistent link: https://www.econbiz.de/10002738411

The effects of a bonus tax on manager compensation and welfare

Radulescu, Doina - 2010

This paper analyses the implications of a currently publicly debated issue, namely the introduction of a bonus tax. We shed light on the effects of the bonus tax on compensation components and study its incidence. We use the Principal Agent model within a two-country framework and consider two...

Persistent link: https://www.econbiz.de/10003965889

Cross-country evidence on teacher performance pay

Woessmann, Ludger - 2010

The general-equilibrium effects of performance-related teacher pay include long-term incentive and teacher-sorting mechanisms that usually elude experimental studies but are captured in cross-country comparisons. Combining country-level performance-pay measures with rich PISA-2003 international...

Persistent link: https://www.econbiz.de/10003998048

Asymmetric taxation and performance-based incentive contracts

Niemann, Rainer - 2011

This paper analyzes the effects of symmetric and asymmetric taxation on performance-based versus fixed remuneration contracts. I integrate a proportional corporation tax and a proportional wage tax into a binary principal-agent model. The wage tax increases the remuneration costs and makes the...

Persistent link: https://www.econbiz.de/10009011369

Team or individual : what determines workers' preferred bonus schemes?

Torsvik, Gaute - 2011

This paper uses data from a firm with team production to investigate the association between workers' productivity, risk aversion and preferred bonus scheme (team or individual). Standard economics make a strong prediction in this case. Workers persistently producing above the team average...

Persistent link: https://www.econbiz.de/10009383539

Productivity response to a contract change

Jayaraman, Rajshri; Ray, Debraj; Véricout, Francis de - 2014

raised the baseline wage by 30% but lowered marginal incentives, by shifting the existing piece rates to higher minimum …. This large and contrarian response to a flattening of marginal incentives is at odds with the standard model, including one … that incorporates dynamic incentives, and it can only be partly accounted for by higher supervisory effort. We conclude …

Persistent link: https://www.econbiz.de/10010252151

Management incentives under formula apportionment : tax-induced distortions of effort and compensation in a principal-agent setting

Martini, Jan T.; Niemann, Rainer; Simons, Dirk - 2014

managerial incentives caused by FA. For this purpose we set up a LEN-type principal-agent model with agents in two different …

Persistent link: https://www.econbiz.de/10010383849

Selection in tournaments : the case of chess players

Linnemer, Laurent; Visser, Michael S. - 2015

We consider a simple tournament model in which individuals auto-select into the contest on the basis of their commonly known strength levels, and privately observed strength-shocks (reflecting temporary deviations from observed levels). The model predicts that the participation rate should...

Persistent link: https://www.econbiz.de/10010472714

Market competition and lower tier incentives

Theilen, Bernd (contributor) - 2008

The relationship between competition and performance-related pay has been analyzed in single-principal-single-agent models. While this approach yields good predictions for managerial pay schemes, the predictions fail to apply for employees at lower tiers of a firm’s hierarchy. In this paper, a...

Persistent link: https://www.econbiz.de/10003790640

The effect of adversity on process innovations and managerial incentives

Dostie, Benoît; Jayaraman, Rajshri - 2009

incentives by firms. Using a large panel data set of workplaces in Canada, our identification strategy relies on exogenous … not change their use of managerial incentives. These results suggest that the threat of bankruptcy may provide impetus for …

Persistent link: https://www.econbiz.de/10003854411