On the Validity of the First-Order Approach with Moral Hazard and Hidden Assets
Journal
Economics Letters
ISSN
0165-1765
ISSN-Digital
1873-7374
Type
journal article
Date Issued
2014-09
Author(s)
Abstract
With moral hazard and anonymous asset trade, first-order conditions need not characterize effort and portfolio choices. The standard procedure for establishing validity of the first-order approach in economies with one hidden asset is not fruitful when multiple assets are hidden.
Language
English
Keywords
Hidden action
Hidden assets
Principal agent
First-order approach
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Refereed
Yes
Publisher
Elsevier
Publisher place
Amsterdam
Volume
124
Number
3
Start page
402
End page
405
Pages
4
Subject(s)
Eprints ID
235050