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This paper studies how altruism between managers and employees affects relational incentive contracts. To this end we … develop a simple dynamic principal-agent model where both players may have feelings of altruism or spite toward each other … that altruism undermines the credibility of a threat of dis- missal but strengthens the credibility of a bonus. Among …
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This paper models aid agencies as financial intermediaries that do not make a financial return to depositors, whose concern is to transfer resources to investor-beneficiaries. This leads to a problem of verifying that the agency is using donations as intended. One solution to this problem is for...
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"The crisis that nearly brought the world's financial house down in 2008 demonstrated clearly and powerfully that the global economy cannot work well where there is widespread deception based in deep-seated corruption and lack of accountability. Corruption and lack of accountability are also key...
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