Monitoring, moral hazard, and turnover

B-Tier
Journal: Economic Theory
Year: 2015
Volume: 58
Issue: 2
Pages: 355-374

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I studied the effects of monitoring on political turnover, when the politicians’ early actions affect future economic outcomes. I considered an infinite-horizon environment, where the expectation about the potential successor’s policy is endogenous. As a result, the incentive to replace the incumbent is endogenous. In a stationary Markov equilibrium, the relationship between monitoring and turnover is non-monotone. The model sheds light on dynamic agency problems when the agent’s initial effort has persistent effects, and on the role of reputation in models with endogenous turnover. Copyright Springer-Verlag Berlin Heidelberg (Outside the USA) 2015

Technical Details

RePEc Handle
repec:spr:joecth:v:58:y:2015:i:2:p:355-374
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29