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The Cost of Non-Decreasing Pay: Tenured Academics and Civil Servants
SSRN
,
2011.
No. 5.
Morfov S. G.
This paper formally analyzes the optimal implementation of compensation schemes where the wage cannot decrease in time. Such arrangements are commonly applied to tenured academics and civil servants. We use a finite-horizon model of moral hazard to analyze the disincentive effects and the cost involved. Myopia is shown to hurt the principal two-fold. If the principal is myopic, she is slow to adjust the contract to binding wages in the future. As a result, any adverse effect on incentives shows up late in the relationship, at an inherently good state, and is permanent. If the agent is myopic, the principal cannot decrease current wages sufficiently to offset the expected slackness in agent's future individual rationality. We also consider an infinite horizon model where current wage binds future wages from below. The dynamic problem is reduced to a series of single-period problems stationary on a properly chosen state space, which allows for computing the model iteratively.
Morfov S. G., / Высшая школа экономики. Series WP9 "Исследования по экономике и финансам". 2010. No. 02.
This paper considers a moral hazard problem in an infinite-horizon, principal-agent framework. In the model, both the principal and the agent can commit only to short-term (single-period) contracts and their reservation utilities are allowed to depend on some finite truncation of the history of observables. After existence is proved, the original problem of obtaining the ...
Added: March 18, 2013
Gorelaya N. V., Деньги и кредит 2015 № №5 С. 44-51
This paper examines how deposit insurance systems affect the degree of market discipline on bank’s risk-taking. The author uses a rich panel dataset on banks in Russia (including subgroups of big, mainly state owned, banks and small privately owned banks) with covering the period after the introduction of the deposit insurance scheme and different variables ...
Added: August 5, 2015
Chirkova E. V., Корпоративные финансы 2011 № 2 С. 24-32
The article discusses the negative consequences of financial bubbles and the appropriateness of the monetary regulation thereof. The pros and cons of the monetary authorities' possible responses to financial bubbles and the options for the regulator's behavior during the inevitable collapse of the bubble are analyzed based on the availability and effectiveness of the regulatory ...
Added: October 2, 2012
Morfov S. G., / НИУ ВШЭ. Series WP9 "Серия WP9 «Исследования по экономике и финансам»". 2013. No. 5.
This paper considers the provision of long-term incentives in a principal-agent model with effort persistence. We analyze how the degree of substitutability between short- and long-term tasks affects compensation and the optimal contract. We demonstrate that a long-term contract with no threat of interim replacement can focus on short-term incentives because of an interaction between ...
Added: May 15, 2013
Chirkova E. V., Корпоративные финансы 2011 № 2(18) С. 24-32
The paper discusses the negative consequences of financial bubbles and the advisability of their monetary regulation. Pros and cons of possible responces of monetary authorities on the formation of a financial bubble and of possbile behavior of the regulator while a bubble collapses are analysed based on the availability and effectiveness of the regulatory instruments, ...
Added: January 18, 2012
Dzagurova N., Журнал институциональных исследований 2012 Т. 4 № 4 С. 7-21
High-powered incentives are still often considered in Russia as an undoubtedly efficient tool to overcome moral hazard problem. This point of view remains popular despite the failure of incentive contracts in the motivation system of the US CEO and the recent theoretical advancements which help to explain the reasons for this failure by so called ...
Added: March 14, 2013
Polyakova M. V., Хабибулина А. Р., Polyakov K. L., Вопросы статистики 2017 № 9 С. 27-41
Current study focuses on the analysis of the impact of the deposit insurance system on the functioning of national banking system. Literature review reflect the difference in the opinions of analytics about the character of this impact. Summarizing points of view one may conclude that in unstable periods deposit insurance system may strengthen the banking ...
Added: November 23, 2017
Molodyko K., Підприємництво, господарство і право / Украина 2012 No. 6 P. 23-27
Conception of reforming of the Deposit Guarantee Fund is offered which includes legislative prohibition on coverage (any repayment) the private commercial debts by the state ...
Added: October 22, 2014
Nazarova V., European Journal of Social Sciences 2013 Vol. 40 No. 1 P. 115-122
Healthcare, like any area of human activity involving the use of limited resources of society, faces two primary objectives: achieving efficiency and fairness in the provision of medical services. As is well known, in most cases the competitive market ensures the optimal allocation of resources.
However, healthcare has some distinctive features which give rise to market ...
Added: February 4, 2014
Matrosova K. A., Вестник Воронежского государственного университета. Серия: Экономика и управление 2016 № 3 С. 42-46
In the first part author proposes the approach to stimulate cost-reduction R&D with price rigidities. Then author describes the requirements for the stimulation scheme to move to a better location. The second section is about the model of innovation based on a new theory of consumption proposed by K. Lancaster. ...
Added: February 15, 2017
Morfov S. G., / Высшая школа экономики. Series WP9 "Исследования по экономике и финансам". 2010. No. 03.
This paper computes the optimal executive compensation in an infinite-horizon moral hazard framework characterized by limited commitment and history-dependent reservation utilities. The model is given a recursive form and some properties of the state space are established. I derive a sufficient condition for the optimal contract to provide the CEO with insurance against fluctuations in ...
Added: March 18, 2013
Aistov A., Aleksandrova E., Экономическая политика 2018 Т. 13 № 3 С. 148-181
This paper contributes to the discussion on possibilities to reveal ex post moral hazard
in the Russian market for private health insurance. By ‘ex post’ we mean the period
when a health insurance contract is valid. Moral hazard implies risky behavior of a
respondent that increases health care utilization and/or decreases their incentives
to prevent an insured event. In ...
Added: July 17, 2018
Bozhya-Volya R. N., Максименко Т. А., Финансовая аналитика: проблемы и решения 2015 № 2 (236) С. 11-25
Financial crisis of 2008 clearly showed weak ability of the banking system to withstand shocks and ineffectiveness of the existing regulation mechanisms and control of financial institutions. The need for efficient public policy preventing liquidity shortages and mass bankruptcy while taking in to account regulator’s transaction costs became obvious. The aim of this study is to ...
Added: January 21, 2015
Aistov A., Aleksandrova E., Gerry C., European Journal of Health Economics 2021 Vol. 22 No. 2 P. 281-309
This paper contributes to the discussion around ex-post (increased utilisation of health care) and ex-ante (changes in health behaviours) moral hazard in supplemental private health insurance. Applying a range of methodologies to data from the Russian Longitudinal Monitoring Survey—Higher School of Economics we exploit a selection mechanism in the data to compare the impact of workplace provided and ...
Added: December 24, 2020
Popov S. V., Economics Letters 2012 Vol. 114 No. 3 P. 273-275
I study the institution of avoiding to hire one’s school own PhD graduates for assistant professorships. I argue that this institution is necessary to create better incentives for researchers to incorporate new information in studies, facilitating the convergence to asymptotic learning of the studied fundamentals. ...
Added: August 31, 2012
Agamirova M., Журнал институциональных исследований 2023 Т. 15 № 1 С. 89-99
The article discusses the possible negative effects of the implementation of the market motivation methods in the public sector and management systems of state corporations. In particular, we focus on the introduction of performance assessments of civil servants which are based on a number of quantitative indicators. There is a belief that high-powered incentives can ...
Added: July 24, 2023
Levin M. I., Matrosova K. A., Вопросы экономики 2014 № 4 С. 99-122
The paper considers monitoring of environmental change as the central element of environmental regulation. Monitoring, as each kind of principal-agent relations, easily gives rise to corruptive behavior. In the paper we analyze economic models of environmental monitoring with high costs, incomplete information and corruption. These models should be the elements of environmental economics and are ...
Added: March 17, 2015
Prakhov I., Savitskaya E. V., Экономика образования 2008 № 2 С. 138-148
В статье дается описание свойств и составляющих образовательного кредита, анализируется роль государства как гаранта студенческих займов в условиях асимметричной информации. Показаны различные формы кредитования, виды и элементы студенческих кредитов. Представлен опыт образовательного кредитования в западных странах, а также в государствах СНГ.
Во второй части статьи строится модель стимулирующего контракта при образовательнм кредитовании. На основе теории агентских ...
Added: April 24, 2015
М. : ИНИОН РАН, 2014
В сборнике рассматриваются теоретические и практические проблемы взаимодействия человека, техносферы и биосферы, а также преодоления антропогенной деградации биосферы.
Для научных работников, специалистов, преподавателей и аспирантов. ...
Added: October 22, 2014
Kotelnikova M. V., Aistov A., Вестник Нижегородского университета им. Н.И. Лобачевского. Серия: Социальные науки 2019 Т. 55 № 3 С. 183-189
The article describes a method that allows to improve the content of disciplines of the mathematical cycle by dividing them into invariant (general) and variable parts. The invariants were identified for such disciplines as «Linear algebra», «Mathematical analysis», «Probability theory and mathematical statistics» delivered to Bachelors program students of economics at several universities. Based on ...
Added: January 28, 2020
М. : КноРус, 2012
Представлена экономическая оценка природно-ресурсного потенциала РФ, рассмотрены закономерности размещения природных ресурсов и основные особенности экологической ситуации в регионах страны, описано влияние экологических факторов на демографический потенциал и здоровье населения, приведена характеристика основных загрязнителей окружающей среды, изложены основы природно-ресурсной политики России и хозяйственный механизм ее осуществления, раскрыты региональные различия современной экологической обстановки в стране и тенденции ...
Added: March 10, 2013
Lipatnikov V. S., Гребенькова Е. С., Проблемы теории и практики управления 2014 № 12 С. 89-96
In this article is conducted research of the mechanism of selection of venture innovative projects. We studied the factors, which influence a choice of business angels. The purpose of work was to receive an advanced system of estimation of projects. On the basis of the survey it is possible to say that the financing of ...
Added: December 8, 2014
Neretina Ekaterina, Neretina E., Journal of Accounting, Finance and Economics 2013 Vol. 3 No. 1 P. 65-76
The last market crash of 2008-2009 showed that the construction sphere is one of the most fragile subject to the crisis effect. The destructive effect of this crash resulted in substantial decrease in mortgage lending, price index, capital investment, and in growth of the cost level. As the construction industry remains strategically important, the eruption ...
Added: September 5, 2013
Oxford Abstracts, 2021
Recovering from Covid: Responsible Management and Reshaping the Economy
In 2021, the 35th Conference and 2nd BAM Conference in the Cloud, will critically engage with the socio-economic recovery from the global Covid-19 pandemic.
Consumers, producers, frontline workers, managers, businesses, public and third sector organisations all have their own roles and responsibilities in transforming our marketised society for the post-pandemic world.
We will critically explore the challenges we all face, aiming to ...
Added: June 12, 2021