innovative output as measured by patents, controlling for endogeneity of contract form. The results are consistent with multi …

of contract employees …

This paper derives the privately optimal lending contract in the celebrated financial accelerator model of Bernanke …, Gertler and Gilchrist (1999). The privately optimal contract includes indexation to the aggregate return on capital and … household consumption. Although privately optimal, this contract is not welfare maximizing as it exacerbates fluctuations in …

We identify and investigate the basic 'hold-up problem' which arises whenever each party to a contract has to pay some … ex-ante cost for the contract to become feasible. We then proceed to show that, under plausible circumstances, a … typically entails writing a 'contract over a contract' which generates a fresh set of ex-ante costs, and hence is associated …

We revisit the optimal-contract approach to the design of monetary institutions, in the light of the Zero Lower Bound … incorporated in the practices of inflation targeting central banks. First, the optimal contract and the implied inflation …