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Bank Bonus Pay as a Risk Sharing Contract

Efing, Matthias - 2019

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that … make external financing costly, the optimal contract between shareholders and employees involves some degree of risk … to rationalize with incentive theories of bonus pay - but support an important risk sharing motive. In particular …

Persistent link: https://ebvufind01.dmz1.zbw.eu/10012892088

Imperfect Signals

Graetz, Georg - 2023

A pre-condition for employer learning is that signals at labor market entry do not fully reveal graduates’ productivity. I model various distinct sources of signal imperfection—such as noise and multi-dimensional types—and characterize their implications for the private return to skill...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10014357032

Competitive Imperfect Price Discrimination and Market Power

Belleflamme, Paul - 2019

Two duopolists compete in price on the market for a homogeneous product. They can 'profile' consumers, i.e., identify their valuations with some probability. If both firms can profile consumers but with different abilities, then they achieve positive expected profits at equilibrium. This...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10012858202

Credit Market Imperfection, Lack of Entrepreneurs and Capital Outflow from a Developing Economy

Marjit, Sugata - 2020

This paper explores the impact of credit market on the entrepreneurs and demand for credit in a credit constrained economy and the resultant impact on the capital flows. In standard trade models the capital flows across countries are explained as a result of the rate of return differentials due...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10012824582

Organised Labour, Labour Market Imperfections, and Employer Wage Premia

Dobbelaere, Sabien; Hirsch, Boris; Müller, Steffen; … - 2021

This paper examines how collective bargaining through unions and workplace co-determination through works councils shape labour market imperfections and how labour market imperfections matter for employer wage premia. Based on representative German plant data for the years 1999-2016, we document...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013314852

News Shocks Under Financial Frictions

Görtz, Christoph; Tsoukalas, John D.; Zanetti, Francesco - 2021

We examine the dynamic effects and empirical role of TFP news shocks in the context of frictions in financial markets. We document two new facts using VAR methods. First, a (positive) shock to future TFP generates a significant decline in various credit spread indicators considered in the...

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013314862

How risky is investment in human capital?

Hartog, Joop; van Ophem, Hans; Bajdechi, Simona Maria - 2004

The risk of investment in schooling has largely been ignored. We assess the variance in the rate of return by surveying … positively skewed. Our best guess of ex ante risk in university education is a coefficient of variation of about 0.3, comparable …

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010261247