An extensive medical and occupational-health literature finds that an imbalance between effort and reward is an important stressor which produces serious health consequences. We incorporate these effects in a simple agency model with moral hazard and limitecl liability, and study their impact on...

An extensive medical and occupational-health literature finds that an imbalance between effort and reward is an important stressor which produces serious health consequences. We incorporate these effects in a simple agency model with moral hazard and limitecl liability, and study their impact on...