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Persistent link: https://www.econbiz.de/10005160668
This paper shows how to solve dynamic agency models by extending recursive Lagrangean techniques à laMarcet and Marimon (2011) to problems with hidden actions. The method has many advantages with respect to the promised utilities approach (Abreu et al., 1990): it is a significant improvement in...
Persistent link: https://www.econbiz.de/10011051900