In this paper I show that, when endogenous labor supply is considered, dynamic inefficiency of Overlapping Generation economies can be neither necessary nor sufficient for debt issuing to generate a steady state welfare improvement, even in the absence of distortionary taxes

This note demonstrates how performance measure congruity and noise determine an agency’s total surplus within an linear agency framework with multiple tasks. It provides a decomposition of agency costs, leading back to a congruity index previously proposed in the literature. In addition,...

We develop a model to show that cartels that produce goods with lower durability are easier to sustain implicitly. This observation gen- erates the following results: 1) implicit cartels have an incentive to pro- duce goods with an inefficiently low level of durability; 2) a monopoly or explicit...