Incentives and Risk Sharing in Sharecropping

Risk Sharing, Investment, and Incentives in the Neoclassical Growth Model

T he amount of risk sharing among households, regions, or countries is crucial in determining aggregate welfare. For example, pooling resources at the national level can help regions better deal with natural disasters like floods. Similarly, pooling resources with an insurance company can help individuals deal with shocks like a house fire or a car accident. Capital accumulation and economic gr...

Incentives and Risk Sharing in a Stock Market Equilibrium

Slavery, Sharecropping, and Sexual Inequality

Incentives for Information Sharing and Outcome Efforts in Networks

In social or organizational networks, it is often observed that different individuals put different levels of production effort depending on their position in the network. One possible reason is reward sharing, which incentivizes particular agents to spend effort in sharing information with others and increasing their productivity. We model the effort level in a network as a strategic decision ...

Pretend-but-Perform Contracts in Sharecropping

This paper is an exercise in the design of contracts within aworld of two persons, namely a landlord and a tenant, restricted tosharecropping. The landlord sets the shares according to the profit-maximizing "golden rule" ([4]), which depends on certain characteris-tics of the tenant. The tenant declares these characteristics, and isthus allowed to pretend to be someone else,...