This paper shows that portfolio constraints have important implications for management compensation and performance … evaluation. In particular, in the presence of portfolio constraints, allowing for benchmarking can be bene…cial. Benchmark … design arises as an alternative effort inducement mechanism vis-a-vis relaxing portfolio constraints. Numerically, we solve …

This paper shows that portfolio constraints have important implications for management compensation and performance … evaluation. In particular, in the presence of portfolio constraints, allowing for benchmarking can be bene…cial. Benchmark design … arises as an alternative effort inducement mechanism vis-a-vis relaxing portfolio constraints. Numerically, we solve jointly …

We evaluate the impact of portfolio constraints on financial markets in a dynamic equilibrium pure exchange economy … and portfolio constraints. Despite numerous applications, portfolio constraints are notoriously difficult to incorporate … solution method that yields new insights on the asset pricing implications of portfolio constraints such as limited stock …

and portfolio constraints. There is a market for physical commodities at any state today or tomorrow and financial …