The effect of limited liability on debt contracts has been analysed as creating the possibility of credit rationing and hence inefficiently low levels of investment. In this paper we instead focus on restrictions on the use of debt finance to avoid moral hazard problems but which add...

We consider the employment relation within firms with reference to investment in human capital. Although the firm knows the future value of the worker's human capital to the worker, the worker only finds this out after the training is complete. Both moral hazard and adverse selection problems...

An increase over time in the proportion of young people obtaining a degree is likely to impact on the relative ability compositions (i) of graduates and non-graduates and (ii) across graduates with different classes of degree award. In a signalling framework, we examine the implications of this...

An increase over time in the proportion of young people obtaining a degree is likely to impact on the relative ability compositions (i) of graduates and non-graduates and (ii) across graduates with different classes of degree award. In a signalling framework, we examine the implications of this...

In this paper several firms compete for the right to obtain intellectual property protection for a basic idea which has subsequent potential applications. The modelling employs an auction analogy, taking the context to be an n-player all-pay auction, with a reserve. We find that, even taking...