Gersbach, Hans; Liessem, Verena - In: Journal of Economic Behavior & Organization 68 (2008) 2, pp. 401-411
We consider a model with a politician facing a multi-task problem while in office. The reelection mechanism distorts the allocation of effort in favor of tasks whose outcomes can be measured more precisely than others. We show that a combination of elections and incentive contracts can alleviate...