Characterization of a risk sharing contract with one-sided commitment

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2013
Volume: 37
Issue: 4
Pages: 794-809

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

In this paper I provide a stopping-time-based solution to a long-term contracting problem between a risk-neutral principal and a risk-averse agent. The agent faces a stochastic income stream and cannot commit to the long-term contracting relationship. To compute the optimal contract, I also design an algorithm that is more efficient than value-function iteration.

Technical Details

RePEc Handle
repec:eee:dyncon:v:37:y:2013:i:4:p:794-809
Journal Field
Macro
Author Count
1
Added to Database
2026-01-29