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This paper develops a simple general equilibrium model which establishes a link between the patience of economic agents and the well-being of nations. We show that firms in long-term oriented countries can mitigate hold-up inefficiencies by engaging with their suppliers in relational contracting...
Persistent link: https://www.econbiz.de/10011810338
partial verifiability treatment with a reduced set of verifiable performance levels, the results reversed and parties relied …
Persistent link: https://www.econbiz.de/10010457849
This paper evaluates the effect of development project aid from the World Bank and China on firms' sales growth, using … affect firm performance. Finally, we show that the positive effect of Chinese aid is stronger for firms lacking transport … infrastructure (and with better electricity provision), suggesting that aid may improve firm performance by releasing their …
Persistent link: https://www.econbiz.de/10012612641
foundation for a number of the common-law excuses from performance. Finally, the case of form contracts for construction is an …
Persistent link: https://www.econbiz.de/10003323165
possible relational contracts. In many situations, total output may be increased through the use of performance pay and through …
Persistent link: https://www.econbiz.de/10003278957
particular, we analyze how horizontal fairness concerns affect performance and efficiency in an environment characterized by …
Persistent link: https://www.econbiz.de/10003863658
This paper applies the theory of relational contracts to make precise the idea that because households are engaged in a repeated non-cooperative game, Pareto efficient outcomes can be supported by self interest, given the specific pattern of specialisation and exchange which exists in the...
Persistent link: https://www.econbiz.de/10003847154
discretionary latitude to reward and punish unenforceable performance factors. Moreover, trading under moderately incomplete …
Persistent link: https://www.econbiz.de/10003609846
This paper studies a partial-contracting model where an agent may provide effort to increase a project’s scope before some later decisions have to be taken. Consistent with existing empirical evidence, we find a positive relationship between exogenous risk and delegation. That is, we show that...
Persistent link: https://www.econbiz.de/10003566282
Empirical work on Akerlof's theory of gift exchange in labor markets has concentrated on the fair wage-effort hypothesis. In fact, however, the theory also contains a social component that stipulates that homogenous agents that are employed for the same wage level will exert more effort,...
Persistent link: https://www.econbiz.de/10009533989