We study how career concerns affect the dynamics of incentives in a multi-period contract, when the agent's productivity is a stochastic function of his past productivity and investment. We show that incentives are stronger and performance is higher when the contract approaches its expiry date....

In many transition countries privatization has taken the form of distribution of states assets at a zero price (mass privatization), and the state has retained some ownership in many companies.We provide a rationale for these policies in terms of a political feasibility constraint, preventing...