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Regression discontinuity designs (RDDs) are a popular method to estimate treatment effects. However, RDDs may fail to yield consistent estimates if the forcing variable can be manipulated by the agent. In this paper, we examine one interesting set of economic models with such a feature....
Persistent link: https://www.econbiz.de/10013117577
British Master and Servant law made employee contract breach a criminal offense until 1875. We develop a contracting … model generating equilibrium contract breach and prosecutions, then exploit exogenous changes in output prices to examine … prosecutions, and wages responded more to labor demand shocks. Coercive contract enforcement was applied in industrial Britain …
Persistent link: https://www.econbiz.de/10013124857
Governments often contract with private firms to provide public services such as health care and education. To decrease …
Persistent link: https://www.econbiz.de/10013126203
This expository paper describes the factors that contribute to failure of health insurance markets, and the regulatory mechanisms that have been and can be used to combat these failures. Standardized contracts and creditable coverage mandates are discussed, along with premium support, enrollment...
Persistent link: https://www.econbiz.de/10013108304
. If when an employer and worker establish a relationship they cannot contract on the output and profits of the worker …'s prospective new firm, the employer counters by inducing the worker to sign a contract that prohibits him from competing or …
Persistent link: https://www.econbiz.de/10013069964
employment contract. Each period the employer makes an irrevocable wage offer to the worker who then chooses an effort level. UK …
Persistent link: https://www.econbiz.de/10012963754
potential to increase efficiency and improve resource allocation, contract renegotiations have been pervasive.We show that … renegotiations in the early stages of the contract, e.g. during construction. We use data on Chilean renegotiations of PPP contracts …
Persistent link: https://www.econbiz.de/10013156676
We evaluate the asset pricing implications of a class of models in which risk sharing is imperfect because of limited enforcement of intertemporal contracts. Lustig (2004) has shown that in such a model the asset pricing kernel can be written as a simple function of the aggregate consumption...
Persistent link: https://www.econbiz.de/10012775482
We study theoretically and empirically how consumers in an individual private long-term health insurance market with front-loaded contracts respond to newly mandated portability requirements of their old-age provisions. To foster competition, effective 2009, German legislature made the...
Persistent link: https://www.econbiz.de/10012954932
Purchase obligations are forward contracts with suppliers and are used more broadly than traded commodity derivatives. This paper is the first to document that these contracts are a risk management tool and have a material impact on corporate hedging activity. Firms that expand their risk...
Persistent link: https://www.econbiz.de/10012958576