informational rents are large enough. In the context of a moral hazard model, we show that insufficient entry occurs if entry costs …

moral hazard frictions within firms. Optimal taxes account for the fiscal externalities and welfare consequences of two …

We analyze a multitasking model with a verifiable routine task and a skill-dependent activity characterized by moral … hazard. Contracts negotiated by firm/employee pairs follow from Nash bargaining. High- and low-skilled employees specialize …

employment. Supplementary insurance may increase these moral hazard effects, but also increases the financial gains of private … point in time, we find that insurer efforts compensate workers' moral hazard effects. …

that salience bias can reverse the nature of the inefficiency arising from moral hazard; i.e., the principal does not …