The twin problems of moral hazard and adverse selection are often blamed for the lack of insurance for many fruits and vegetables. This paper develops an alternative method of testing for adverse selection that uses a two-stage approach to determine the effects of technical inefficiency on the...

The delegation-agent models in agricultural assurance are established both under the circumstances of information symmetry and information asymmetry. Insurers choose effort level —a* according to the first order optimal condition of at the present stage when the information is symmetric. While...

My research focuses on the reasons for banking crises and the corresponding policy rulesthat could help prevent such crises. This abstract briefly reviews the two essays in mydissertation. The first essay focuses on the optimal mechanism design of the depositinsurance system while the second...

Theoretical research argues that convertible bonds mitigate the contracting costs of moral hazard, adverseselection, and financial distress. Using firm-specific and macroeconomic factors of the contracting costs,we examine the extent to which they impact the likelihood of issuance and the...

We analyze whether fluctuation in economy-wide factors cause time-series variation in thecontracting costs of moral hazard, adverse selection, and financial distress, and so create windows ofopportunity for firms to issue debt. Using the announcement period abnormal returns as one measure of...

My study examines the relationship between principal and agent in a moral hazard setting where the principal has the ability to monitor the actions of the agent at an interim stage of the project. I show that monitoring can induce the agent to exert higher levels of effort and can result in a...

We consider a risk averse entrepreneur who approaches a diversified venture capitalist (VC) for financing of a project with positive potential return. We develop several models that capture key features of the venture financing, including staged investment, VC oversight costs and agency...

The main goal of this dissertation was to obtain an understanding as to the true economic nature of employee share options and the problems surrounding the accounting thereof.The main conclusion of this study is that employee share options should be expensed in the income statement as and when...

University of Minnesota Ph.D. dissertation. July 2010. Major: Economics. Advisors: Patrick Bajari and Robert Town. 1 computer file (PDF): x, 136 pages, appendices A.

Thesis (Ph. D.)--University of Rochester. Dept. of Economics, 2008.