This paper uses an optimal contract approach to examine the issue of compliance monitoring in agri-environmental policy when the farmer is risk neutral and risk averse. The environmental agency chooses monitoring accuracy and payments for farmer's (non-)compliance. With a risk-neutral farmer, an...

Using a simple three-period model in which a manager can gather information before making an investment decision, this paper studies incentive effects of various executive stock options. In particular, we show how the exercise price of executive stock options is related to base salary, the size...

This paper uses an optimal contract approach to examine the issue of compliance monitoring in agri-environmental policy when the farmer is risk neutral and risk averse. The environmental agency chooses monitoring accuracy and payments for farmer's (non-)compliance. With a risk-neutral farmer, an...