Career concerns can mitigate moral hazard problems, but these diminish as the agent's retirement age approaches. Addressing this problem, this note draws attention to the role of the interaction between contractible and non-contractible signals.

This paper surveys tax haven legislation and links the literature on tax havens to the literature on asymmetric information. I argue that the core aim of tax haven legislation is to create private information (secrecy) for the users of tax havens. This leads to moral hazard and transaction costs...

The paper identifies conditions under which ‘inefficient’ favouritism emerges as an optimal outcome even when the principal do not exhibit ex-ante preferential bias for any particular agent. We characterize how the optimal incentive scheme is influenced in the presence of status incentives....

We investigate whether individuals exhibit forward looking behavior in their response to the non-linear pricing common in health insurance contracts. Our primary empirical strategy exploits the fact that employees who join an employer-provided health insurance plan later in the calendar year...

A comparison of the neoclassical and the social economics paradigms, showing that the explicit inclusion of values enhances the explanatory value of social economics. This is illustrated by using literary examples to explain the difficulty the competitive model has in providing analyses and...

Several theoretical and empirical models have been developed to examine how risk aversion affects compliance with agri-environmental schemes under asymmetric information and uncertainty. However, none has examined the case where the level of compliance is a continuous variable and producers face...

We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral hazard context. Incentive contracts that are optimal when there are only selfish actors become inferior when some agents are concerned with fairness. Conversely, contracts that...

We study how a donor can use restricted transfers to control the moral hazard behavior of a recipient and how the composition of unrestricted and restricted transfers is adjusted in response to changes in the moral hazard behavior of the recipient. Under certain conditions, our game-theoretic...

This study examines the question whether uncoordinated steps of some EU states changing their deposit insurance schemes in the middle of 2008 could have led to shift of deposits among EU countries. The paper deals with changes of the rules which were introduced at the end of year 2008, and...

This paper examines the impact of macroeconomic and financial sector policy announcements in the United States, the United Kingdom, the euro area, and Japan during the recent crisis on interbank credit and liquidity risk premia. Announcements of interest rate cuts, liquidity support, liability...