Narrow search
Showing 1 - 10 of 597
Cover Image
Negative externalities and equilibrium existence in competitive markets with adverse selection
Siemens, Ferdinand von; Kosfeld, Michael - 2009
Rothschild and Stiglitz (1976) show that there need not exist a competitive equilibrium in markets with adverse selection. Building on their framework we demonstrate that externalities between agents - an agent's utility upon accepting a contract depends on the average type attracted by the...
Persistent link: https://www.econbiz.de/10003831629
Cover Image
Bonus culture : competitive pay, screening, and multitasking
Bénabou, Roland; Tirole, Jean - 2013
compensation. The model combines multitasking and screening, embedded into a Hotelling-like framework. Competition for the most … ; inequality ; multitask ; contracts ; screening ; adverse selection ; moral hazard ; work ethic ; Hotelling ; competition …
Persistent link: https://www.econbiz.de/10009729417
Cover Image
Who bears the welfare costs of monopoly?the case of the credit card industry
Herkenhoff, Kyle; Raveendranathan, Gajendran - 2019
How are the welfare costs from monopoly distributed across U.S. households? We answer this question for the U.S. credit card industry, which is highly concentrated, charges interest rates that are 3.4 to 8.8 percentage points above perfectly competitive pricing, and has repeatedly lost antitrust...
Persistent link: https://www.econbiz.de/10012147023
Cover Image
Does greater inequality lead to more household borrowing? : new evidence from household data
Coibion, Olivier; Gorodnichenko, Yuriy; Kudlyak, Marianna; … - 2014
One suggested hypothesis for the dramatic rise in household borrowing that preceded the financial crisis is that low-income households increased their demand for credit to finance higher consumption expenditures in order to "keep up" with higherincome households. Using household level data on...
Persistent link: https://www.econbiz.de/10010238213
Cover Image
Consumer loan response to permanent labor income shocks : evidence from a major minimum wage increase
Güney, Ethem; Hacihasanoglu, Yavuz Selim; Tumen, Semih - 2017
We investigate the impact of a substantial minimum wage increase, which became effective in January 2016, on consumer loans in Turkey. Using bank-level data and designing an original identification strategy, we ask whether the loans provided by banks with a historically high share of low-wage...
Persistent link: https://www.econbiz.de/10011647652
Cover Image
Consumer debt and default : a macro perspective
Exler, Florian; Tertilt, Michele - 2020
In this survey, we review the quantitative macroeconomic literature analyzing consumer debt and default. We start by … providing an overview of consumer bankruptcy law in the US and document the relevant institutional changes over time. We proceed … has by now become the workhorse model of consumer credit and default. We discuss a quantitative version of the model and …
Persistent link: https://www.econbiz.de/10012171050
Cover Image
Empowerment and the dark side of delegation
Kräkel, Matthias - 2018
The existing delegation literature has focused on different preferences of principal and agent concerning project selection, which makes delegating authority costly for the principal. This paper shows that delegation has a cost even when the preferences of principal and agent are exogenously...
Persistent link: https://www.econbiz.de/10011795221
Cover Image
Producer protection legislation and termination damages in the presence of contracting frictions
Wu, Steven - 2009
This study models producer protection legislation that would grant growers the right to claim damages (PPLD) if their contracts are prematurely terminated. In the absence of contracting frictions that prevent contractors from redesigning contracts to accommodate exogenous policy changes, PPLD...
Persistent link: https://www.econbiz.de/10003894440
Cover Image
Optimal use of labor market policies : the role of job search assistance
Wunsch, Conny - 2010
This paper studies the role of job search assistance programs in optimal welfare-to-work programs. The analysis is based on a framework, that allows for endogenous choice of benefit types and levels, wage taxes or subsidies, and activation measures such as monitoring and job search assistance...
Persistent link: https://www.econbiz.de/10003940543
Cover Image
Optimal incentive contracts under moral hazard when the agent is free to leave
Englmaier, Florian; Mühlheußer, Gerd; Roider, Andreas - 2010
, separation might occur in equilibrium. Except for the latter, these findings are robust to renegotiation. When the outside option …
Persistent link: https://www.econbiz.de/10003984691