This paper characterizes the efficient sequential equilibrium when a government uses indirect control to exert its … to exert direct control by intervening with an endogenously determined intensity of force which is costly to both players …

This paper characterizes the efficient sequential equilibrium when a government uses indirect control to exert its … to exert direct control by intervening with an endogenously determined intensity of force which is costly to both players …

This paper characterizes optimal policy when a government uses indirect control to exert its authority. We develop a … standard repeated moral hazard model with two additional features. First, the principal is allowed to exert direct control by …

This paper characterizes optimal policy when a government uses indirect control to exert its authority. We develop a … standard dynamic principal-agent model with two additional features. First, the principal is allowed to exert direct control by …

This paper proposes a theory to explain why a politician delegates policy tasks to a technocrat in an independent … opinion. One natural application of the theory is in the field of monetary policy where the model provides a new theory of …

We propose a theory to explain why, and under what circumstances, a politician delegates policy tasks to a technocrat … in an independent institution, and analyze under what conditions delegation is optimal for society. Our theory builds on … natural application of our framework leads to a new theory of central bank independence …

This paper proposes a theory to explain why a politician delegates policy tasks to a technocrat in an independent … opinion. One natural application of the theory is in the field of monetary policy where the model provides a new theory of …