Only the Final Outcome Matters: Persistent Effects of Efforts in Dynamic Moral Hazard
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چکیده
منابع مشابه
Working Paper Series Repeated Moral Hazard with Effort Persistence Wp 08-04 Arantxa Jarque Federal Reserve Bank of Richmond Repeated Moral Hazard with Effort Persistence
I study a problem of repeated moral hazard in which the effect of effort is persistent over time: each period’s outcome distribution is a function of a geometrically distributed lag of past efforts. I show that when the utility of the agent is linear in effort, a simple rearrangement of terms in his lifetime utility translates this problem into a related standard repeated moral hazard. The solu...
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