Gorton, Gary B.; He, Ping; Huang, Lixin - In: Journal of Economic Theory 149 (2014) C, pp. 311-349
We study an infinite-horizon Lucas tree model where a manager is hired to tend to the trees and is compensated with a fraction of the treesʼ output. The manager trades shares with investors and makes an effort that determines the distribution of the output. When the manager is less (more)...