In this paper a stylized labour contarct model is constructed where it is shown that when contracts are enforced by a specific performance rule, then above mentioned unfortunate features emerge. Thse features 'disappear' when the environment is amended by assuming that the court uses an at-will...

In this paper I demonstrate the existence an initial incomplete contract that can subsequently be renegociated to the set of first best allocations in a fairly geneal principal-agent model when the state space is continuous.

In this paper we seek to add to the understanding of the cost characteristics of Atlantic Canadian manufacturing. We examine the effects of public infrastructure on provincial manufacturing costs. The modelling technique employed is that of the CES-TL variable system.

This paper examines how the first-best models of compensation based on the agents' talents and responsibilities analyzed in some recent contributions can be extended to a second-best context. A few social criteria are proposed and compared to alternative approaches by Roemer and Van de gaer.