Using a model with constant relative risk-aversion preferences, endogenous labor supply and partial insurance against … cost associated with missing insurance markets. On the other hand, greater wage dispersion presents opportunities to raise … second moments of the joint distribution over individual wages, consumption and hours …

This paper presents theory and evidence on horizontal industry structure, focusing on situations where plant …

the executive. Agency theory remains the only viable candidate for answering the question about how executive compensation … compensation, in the context of agency theory. We suggest two fertile areas for research regarding the improvement of executive …

The principal-agent model of executive compensation is of central importance to the modern theory of the firm and …

this risk. We use our theory to interpret some executive compensation data from the early 1970's. The results are generally …

worker buys an insurance, which gives a constant income and retirement benefits in exchange for the total output. The level …

We formally link insurance markets with product markets and identify a demand effect of insurance: if risk …-averse consumers can buy insurance against possible product failure, there will be some additional consumers that buy the product … have a higher willingness to pay if they can also buy insurance. But a higher price causes those consumers to leave the …

Firms hiring fresh graduates face uncertainty on the future productivity of workers. Theory suggests that starting … wages reflect this, with lower pay for greater uncertainty. We use the dispersion of exam grades within a field of education … as an indicator of the unobserved heterogeneity that employers face. We find solid evidence that starting wages are lower …