Gottardi, Piero; Jerez, Belén - Dipartimento di Economia, Università Ca' Foscari Venezia - 2006
In a fundamental contribution, Prescott and Townsend (1984) [PT] have shown that the existence and efficiency properties of Walrasian equilibria extend to economies with moral hazard, when agents' trades are observable (exclusive contracts can be implemented). More recently, Bennardo and...