This paper discusses the testable implications of the Walrasian hypotheses: H1 - Observed market demand is the sum of consumer's demands derived from utility maximization subject to budget constraints. H2 - There exists an observable (locally) unique equilibrium price system such that the...

Why do rent, wage, and sharecropping contracts exist simultaneously? One possibility is that contract types distinguish between workers with different endowments of managerial ability. This article describes an empirical test of the link between managerial ability and contract choice.