This chapter reviews recent theoretical work on the design of regulatory policy, focusing on
the complications that arise when regulated suppliers have better information about the …

Where such behaviors as risk-taking and hard work are not subject to complete contracts,
some distributions of assets (for instance the widespread use of tenancy) may preclude …

Bad economic times are typically associated with a high incidence of financial distress, eg,
insolvency and bankruptcy. This paper studies the role of changes in borrower solvency in …

This paper models economic development as a process of institutional transformation by
focusing on the interplay between agents' occupational decisions and the distribution of …

Economics has much to do with incentives--not least, incentives to work hard, to produce
quality products, to study, to invest, and to save. Although Adam Smith amply confirmed this …

As a new type of word-of-mouth information, online consumer product review is an emerging
market phenomenon that is playing an increasingly important role in consumers' purchase …

Two innovative financing schemes have emerged in recent years to enable suppliers to
obtain financing for production. The first, purchase order financing (POF), allows financial …

This paper develops a model of growth and income inequalities in the presence of imperfect
capital markets, and it analyses the trickle-down effect of capital accumulation. Moral hazard …

By committing to terminate funding if a firm's performance is poor, investors can mitigate
managerial incentive problems. These optimal financial constraints, however, encourage …

This article identifies some of the major issues that have been examined in the literature on
incentives. The article begins by discussing the frictions that lie at the heart of incentive …