Similar Search Results

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 are matched, there is a standard moral hazard problem. However, the firm's profit depends on the price of the good the worker produces, and the price is determined by...

Persistent link: https://www.econbiz.de/10011580675

Should unemployment insurance be asset-tested

Köhne, Sebastian; Kuhn, Moritz - 2013

We study asset-tested unemployment insurance in an incomplete markets model with moral hazard during job search. Asset testing has two counteracting effects on welfare. On the one hand, it improves consumption insurance by introducing state contingent transfers to agents most in need. On the...

Persistent link: https://www.econbiz.de/10009765509

Should UI benefits really fall over time?

Hassler, John; Rodríguez Mora, José Vicente - 2002

analytically tractable model allowing moral hazard, adverse selection and hidden savings. Analytical results show that when the …. The only exception is when there is moral hazard and no hidden savings. In general, adverse selection problems calls for …

Persistent link: https://www.econbiz.de/10011513998

Fairness, incentives and contractual incompleteness

Fehr, Ernst; Klein, Alexander; Schmidt, Klaus M. - 2001

We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral hazard context. Incentive contracts that are optimal when there are only selfish actors become inferior when some agents are concerned about fairness. Conversely, contracts that...

Persistent link: https://www.econbiz.de/10011398105

Nitpicky insurers and the law of contracts

Bourgeon, Jean-Marc; Picard, Pierre M. - 2017

that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … costlessly observable, then it should be included in the contract to improve the risk sharing-incentive trade-off under moral … resulting incompleteness of the contract opens the door to controversies and disputes that may lead to judicial procedures. We …

Persistent link: https://www.econbiz.de/10011723471

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...

Persistent link: https://www.econbiz.de/10012697032

Procedural vs. substantive approaches in non-comprehensive contracts

Demougin, Dominique; Bental, Benjamin - 2025

preponderance-of-the-evidence to determine whether the agent acted in accordance with the contract. In the second method, the court … adopts a substantive approach, treating the original contract as incomplete, thus rendering a decision based on what it … believes the parties would have agreed upon had they been able to complete the contract ahead of time. From an efficiency …

Persistent link: https://www.econbiz.de/10015396893

The optimal duration of contracts

Poutvaara, Panu; Takalo, Tuomas; Wagener, Andreas - 2017

. Agents decide on a contract-specific and non-verifiable investment. Incentive compatibility requires that initial contracts …

Persistent link: https://www.econbiz.de/10011780588

Relational contracts and trust in a high-tech industry

Calzolari, Giacomo; Felli, Leonardo; Koenen, Johannes; … - 2021

We study how informal buyer-supplier relationships in the German automotive industry affect procurement. Using unique data from a survey focusing on these, we show that more trust, the belief that the trading partner acts to maintain the mutual relationship, is associated with both higher...

Persistent link: https://www.econbiz.de/10012649766

Formal and informal risk sharing in LDCs : theory and empirical evidence

Dubois, Pierre (contributor); Jullien, Bruno (contributor); … - 2008

Persistent link: https://www.econbiz.de/10003630524