optimal portfolio strategies by fund managers. In emerging markets, dedicated managers outperforming a benchmark index and … global managers maximizing absolute returns lead to systematic interactions between asset prices, without asymmetric …

This paper underscores the importance of the assessment of incentives of the main agents in a financial system as a key … diagnostic approach for the assessment of incentives. This approach highlights the need for additional research on the …

The paper emphasizes the role of institutions and incentives in the presence of externalities. An economy with multiple … effective institutions exist for overcoming coordination failure. External financing may weaken incentives for adjustment over … that strengthen incentives to provide effort. Uncertainty regarding future taxes reduces present effort and the …

create low inflationary expectations balance promises of lower inflation with dynamic incentives that make them more credible …

We propose a theory to explain why, and under what circumstances, a politician gives up rent and delegates policy tasks … to an independent agency. We apply this theory to monetary policy by extending a standard dynamic ""New …-Keynesian"" stochastic general equilibrium model. This model gives a new theory of central bank independence that is unrelated to the …

This paper proposes a theory to explain why a politician delegates policy tasks to a technocrat in an independent … opinion. One natural application of the theory is in the field of monetary policy where the model provides a new theory of …

countries using an analytical framework based on principal-agent theory. This simple model can be applied to various PEM systems …

analyzed using standard tools in economics (incentives and principal-agent theory). We discuss the implications of our approach …