re-negotiated. Foreseeing this, the parties to the contract will write one that is renegotiation-proof. Under such a … contract, nominal shocks affect real consumption. Since the argument should apply in many situations, it will have …

In this paper I explore optimal employment contract design in a random search framework, where workers search on and …

. In the presence of career concerns, the optimal compensation contract optimizes total incentives -- the combination of … the implicit incentives from career concerns and the explicit incentives from the compensation contract. Thus, the … explicit incentives from the optimal compensation contract should be strongest when a worker is close to retirement. We find …

Two parties sign a contract but before they fully perform they modify the contract. Should courts enforce the modified … to write a contract that is robust to hold-up or that makes the facts relevant to modification verifiable. But … contract technology, e.g., the use of liquidated damages, to ensure commitment are disfavored by courts and subject to …