On the validity of the first-order approach with moral hazard and hidden assets

C-Tier

Journal: Economics Letters

Year: 2014

Volume: 124

Issue: 3

Pages: 402-405

Authors (2)

Bertola, Giuseppe (Università degli Studi di Tori...) Koeniger, Winfried (Universität St. Gallen)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

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Abstract

With moral hazard and anonymous asset trade, first-order conditions need not characterize effort and portfolio choices. The standard procedure for establishing validity of the first-order approach in economies with one hidden asset is not fruitful when multiple assets are hidden.

On the validity of the first-order approach with moral hazard and hidden assets

Authors (2)

Abstract

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