Optimal Contracts and Competitive Markets with Costly State Verification

Optimal Contracts and Competitive Markets with Costly State Verification PDF Author: Robert M. Townsend
Publisher:
ISBN:
Category : Contracts
Languages : en
Pages : 0

Book Description

Optimal Contracts and Competitive Markets with Costly State Verifications

Optimal Contracts and Competitive Markets with Costly State Verifications PDF Author: Robert M. Townsend
Publisher:
ISBN:
Category :
Languages : en
Pages : 46

Book Description

Optimal Contracts with Costly State Verification

Optimal Contracts with Costly State Verification PDF Author: Stefan Krasa
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 35

Book Description

Optimal Contracts in a Dynamic Costly State Verification Model

Optimal Contracts in a Dynamic Costly State Verification Model PDF Author: Cyril Monnet
Publisher:
ISBN:
Category :
Languages : en
Pages : 45

Book Description
This paper describes optimal contracts in a dynamic costly state verification model with stochastic monitoring. An agent operates a risky project on behalf of a principal over several periods. Each period, the principal can observe the revenues from the project provided he incurs a fixed cost. We show that an optimal contract exists with the property that, in each period and for every possible revenue announcement by the agent, either the principal claims the entire proceeds from the project or promises to claim nothing in the future. This structure of payments enables the principal to minimize audit costs over the duration of the project. Those optimal contracts are such that the agent's expected income rises with time. Moreover, except in at most one period, the principal claims the entire returns of the project whenever audit occurs. We also provide conditions under which all optimal contracts must satisfy these properties.

Costly State Verification and Debt Contracts

Costly State Verification and Debt Contracts PDF Author: Andrea Attar
Publisher:
ISBN:
Category :
Languages : en
Pages : 30

Book Description
This paper presents a critical review of the role of the Costly State Verification framework in financial contracting.

Optimal Contracts Under Costly State Falsification

Optimal Contracts Under Costly State Falsification PDF Author: Jeffrey Malcolm Lacker
Publisher:
ISBN:
Category : Contracts
Languages : en
Pages : 72

Book Description

Imperfect Competition and Sticky Prices

Imperfect Competition and Sticky Prices PDF Author: N. Gregory Mankiw
Publisher: MIT Press
ISBN: 9780262631334
Category : Business & Economics
Languages : en
Pages : 448

Book Description
These two volumes bring together a set of important essays that represent a "new Keynesian" perspective in economics today. This recent work shows how the Keynesian approach to economic fluctuations can be supported by rigorous microeconomic models of economic behavior. The essays are grouped in seven parts that cover costly price adjustment, staggering of wages and prices, imperfect competition, coordination failures, and the markets for labor, credit, and goods. An overall introduction, brief introductions to each of the parts, and a bibliography of additional papers in the field round out this valuable collection.Volume 1 focuses on how friction in price setting at the microeconomic level leads to nominal rigidity at the macroeconomic level, and on the macroeconomic consequences of imperfect competition, including aggregate demand externalities and multipliers. Volume 2 addresses recent research on non-Walrasian features of the labor, credit, and goods markets. Contributors George A Akerlof, Costas Azariadis, Laurence Ball, Ben S. Bernanke, Mark Bits, Olivier J. Blanchard, Alan S. Blinder, John Bryant, Andrew S. Caplin, Dennis W. Carlton, Stephen G. Cecchetti, Russell Cooper, Peter A. Diamond, Gary Fethke, Stanley Fischer, Robert E. Hall, Oliver Hart, Andrew John, Nobuhiro Kiyotaki, Alan B. Krueger, David M. Lilien, Ian M. McDonald, N. David Mankiw, Arthur M. Okun, Andres Policano, David Romer, Julio J. Rotemberg, Garth Saloner, Carl Shapiro, Andrei Shleifer, Robert M. Solow, Daniel F. Spulber, Joseph E. Stiglitz, Lawrence H. Summers, John Taylor, Andrew Weiss, Michael Woodford, Janet L. Yellen

IMF Staff papers, Volume 45 No. 2

IMF Staff papers, Volume 45 No. 2 PDF Author: International Monetary Fund. Research Dept.
Publisher: International Monetary Fund
ISBN: 1451974167
Category : Business & Economics
Languages : en
Pages : 204

Book Description
This paper analyzes contagion and volatility with imperfect credit markets. The paper interprets contagion effects as an increase in the volatility of shocks impinging on the economy. The implications of this approach are analyzed in a model in which domestic banks borrow at a premium on world capital markets, and domestic producers borrow at a premium from domestic banks. Financial spreads depend on a markup that compensates lenders, in particular, for the expected cost of contract enforcement. Higher volatility increases financial spreads and the producers’ cost of capital.

Financial Markets and Economic Performance

Financial Markets and Economic Performance PDF Author: John E. Silvia
Publisher: Springer Nature
ISBN: 3030762955
Category : Business & Economics
Languages : en
Pages : 469

Book Description
Effective decision making requires understanding of the underlying principles of financial markets and economics. Intellectually, economics and financial markets are genetically intertwined although when it comes to popular commentary they are treated separately. In fact, academic economic thinking appears separate from financial market equity strategy in most financial market commentary. Historically, macroeconomics tended to assume away financial frictions and financial intermediation whereas financial economists did not necessarily consider the negative macroeconomic spill overs from financial market outcomes. In more recent years, the economic discipline has gone through a serious self-reflection after the global crisis. This book explores the interplay between financial markets and macroeconomic outcomes with a conceptual framework that combines the actions of investors and individuals. Of interest to graduate students and those professionals working in the financial markets, it provides insight into why market prices move and credit markets interact and what factors participants and policy makers can monitor to anticipate market change and future price paths. ​

Regulation and Markets

Regulation and Markets PDF Author: Daniel F. Spulber
Publisher: MIT Press
ISBN: 9780262192750
Category : Business & Economics
Languages : en
Pages : 720

Book Description
Regulation and Markets provides the up to date, integrated analysis of regulatory policies and the administrative process that is needed in today's field of regulation economics. The book takes a modern perspective, using the tools of industrial organization and game theory. It is the only unified treatment of the field and combines theoretical models with consideration of public policy issues in the areas of antitrust, price regulation, environmental regulation, product quality, and workplace safety. The discussion considers both the welfare effects of regulation and the institutional aspects of the administrative regulatory process. Developments in the fields of law and political science have been integrated in a rigorous manner into the economic framework.Sections of the book address administrative process and market allocation, competition and pricing under increasing returns to scale, administrative regulation of markets, and antitrust enforcement. The conclusion evaluates regulatory policy and deregulation. Extensive literature citations throughout enhance the books value as a reference.
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