Using an agency model, we show how delegation, by generating additional private information, improves dynamic … effect which reduces an inefficient agent's take-the-money-and-run incentive. Although delegation entails a loss of control …, it is optimal when uncertainty about operational efficiency is large. Moreover, delegation is more effective with …

Using an agency model, we show how delegation, by generating additional private information, improves dynamic … effect which reduces an inefficient agent’s take-the-money-and-run incentive. Although delegation entails a loss of control …, it is optimal when uncertainty about operational efficiency is large. Moreover, delegation is more effective with …

prices by introducing delegation into a standard Lucas exchange economy. In equilibrium, some investors trade on their own …

paper views the implementation of TELs as a principal-agent problem. Agency theory predicts that delegation is affected by … require costly coordinated action. These findings contradict an alternative theory of TEL implementation that looks towards … the policy’s origin. My research suggests that the arrangements of delegation determine when and under what conditions …