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Our paper evaluates recent regulatory proposals mandating the deferral of bonus payments and claw-back clauses in the financial sector. We study a broadly applicable principal agent setting, in which the agent exerts effort for an immediately observable task (acquisition) and a task for which...
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knowledge economy. Corporate taxes and labor income taxes can affect both the firm owner’s and the employee’s incentives to … incentives and reductions in the tax rate levied on profit sharing schemes. This complementarity holds, albeit with different … relative importance for the two tax incentives, also with non-deductible labor costs, with a stochastic innovation value …
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constitutes a rational response to a time allocation problem, their reaction to incentives appears myopic in other dimensions. …
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Are monetary and non-monetary incentives used as substitutes in motivating effort? I address this question in a … and non-monetary incentives imperfect. These findings have implications for the design of incentives in mission …
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