operating profit of capital, I extend the model to include measurement error and analyze the cash-flow coefficient in …

can choose to pay with either cash or credit. This framework predicts that the current level of the stock of cash … determines whether the agent uses cash or credit. Cash is used whenever the agent has enough of it, credit is used when cash … average share of expenditures paid in cash depend on the opportunity cost of cash relative to the cost of credit. The model …

-term contracts. We argue that only if the parties to a unitization contract have unit production shares that are the same as their … cost shares will the contract be incentive compatible. Using a data base of sixty unit operating agreements, we measure the … desirable contract rules for avoiding moral hazard. It also shows how the effects of those rules can be replicated in difficult …

Two parties sign a contract but before they fully perform they modify the contract. Should courts enforce the modified … to write a contract that is robust to hold-up or that makes the facts relevant to modification verifiable. But … contract technology, e.g., the use of liquidated damages, to ensure commitment are disfavored by courts and subject to …

We estimate the impact of venture capital (VC) contract terms on startup outcomes and the split of value between the … entrepreneur and investor, accounting for endogenous selection via a novel dynamic search and matching model. The estimation uses a … power to receive more investor-friendly terms compared to the contract that maximizes startup values. Better VCs still …