The prompt availability of information on the current state of the economy in real-time is required for prediction purposes and crucial for timely policy adjustment and economic decision-making. While important macroeconomic indicators are reported only quarterly and also published with...

We study a continuous-time principal-agent model in which a risk-neutral agent with limited liability must exert unobservable effort to reduce the likelihood of large but relatively infrequent losses. Firm size can be decreased at no cost or increased subject to adjustment costs. In the optimal...