In a Lucas (1978) model, with a Kreps-Porteus (1978) nonexpected utility, the following property of equilibrium holds generically in the space of finite-state, Markov output growth rate processes: equilibrium price of equity is distinct from that implied by any intertemporally additive...

It is well known that there are infinitely many incentive contracts that achieve the full information outcome in the standard agency model when the agent is risk-neutral. However, since Harris and Raviv (1979), the fixed-rent contract has been the focal point among those infinitely many...