A bonus scheme for tenure systems in which the total wage consists of the base wage and the bonus proportional to the excess production more than the minimum requirement is considered. The existence of the take-off bonus rate below which the employee does not response to the increase of the...

This paper considers three questions : (1) what is the role of financial markets in development, (2) why do some economies have such poorly developed financial markets, and (3) can government policy be used to promote financial market development?