It is well known that an uncertain income stream will induce individuals to save if they are forward-looking. In this paper we investigate the consequences of such saving on the distribution of wealth among households. The inquiry is motivated by the fact that both the dispersion of the US...

One interesting organizational strategy in the marketplace is a reallocation of control rights in an organization's hierarchy system. When facing certain kinds of internal or external challenges, organizations are sometimes observed to reallocate certain control rights horizontally or...

Staged financing is a popular financing strategy in corporate finance. However, depending on the type of financial instrument used to carry out the financing strategy, staged financing has many potential problems. This paper shows that certain types of convertibles can be deployed to resolve the...

It is well known that there are infinitely many incentive contracts that achieve the full information outcome in the standard agency model when the agent is risk-neutral. However, since Harris and Raviv (1979), the fixed-rent contract has been the focal point among those infinitely many...

This paper investigates staged financing in an environment where an entrepreneur faces an imperfect capital market and an investor faces moral hazard and uncertainty. Staged financing plays two roles in this model: to control risk and to mitigate moral hazard. Using parametric functions and...