This article presents a continuous-time agency model in the presence of adverse selection and moral hazard with a risk-averse agent and a risk-neutral principal. Under the model setup, we show that the optimal controls are constant over time, and thus the optimal menu consists of contracts that...

I extend Holmstrom and Milgrom's model by allowing the agent to control privately or publicly the diffusion-rate process, and show that the optimal contract is still linear. I discuss the conditions under which conflicts over the choice of diffusion rate do and do not arise. As an application, I...

This article reports the results of an event history analysis of the determinants of job transitions among a sample of young adults (18-24 year olds). It contrasts the status attainment model with a model of a segmented labour market and compares the utility of both in an attempt to explain the...