Low outcomes and the first-order approach to agency problems

This paper claims that the ﬁrst-order approach to agency problems can only hold if the likelihood ratio is bounded from below. None of the classic sets of su cient conditions to validate it (Mirrlees-Rogerson (1979-1985) and Jewitt (1988)) guarantees such a condition.

MoreLess

Year of publication:	2007
Authors:	Gutiérrez, Óscar
Published in:	Investigaciones Economicas. - Fundación SEPI. - Vol. 31.2007, 2, p. 341-348
Publisher:	Fundación SEPI
Subject:	Agency \| likelihood ratio \| ﬁrst-order approach

More details

Extent:	application/pdf
Type of publication:	Article
Language:	English
Notes:	Published
Classification:	J33 - Compensation Packages; Payment Methods ; M40 - Accounting and Auditing. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005690064