Costly monitoring, dynamic incentives, and default
نویسندگان
چکیده
منابع مشابه
Costly monitoring, dynamic incentives, and default
We study optimal dynamic financial contracts between a lender and a borrower in the presence of costly state verification. The efficient contract is such that (1) interim monitoring can prevent future inefficient liquidation of investment projects that are due to informational asymmetries and (2) two levels of bankruptcy can be distinguished, one that leads to monitoring and the other that lead...
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 2015
ISSN: 0022-0531
DOI: 10.1016/j.jet.2015.05.011