The implementability of area-yield insurance contracts in the presence of symmetric and asymmetric information about the farmer's "beta" linking his yield to the risk-pool's yield is examined. In the presence of fixed costs and symmetric information result that optimality requires setting the...

In the present article, Tiebout meets Laffont and Tirole in the land of Fiscal Federalism. We use a non-trivial Principal-Multi-Agent model to characterize the optimal intergovernmental grant schedule, when the cost of local public goods depends on hidden characteristics and actions of local...