It has been argued that when management is more concerned with the firm’s survival than with profitability, it is efficient to use a levered capital structure and thereby commit to the transfer of the liquidation decision to lenders. Our paper analyzes this view in a setting where lenders may behave opportunistically when they control the liquidation decision — i.e., when there is a lender hold...

Governments in Africa are turning to large-scale partnerships with donors and multinational companies to stimulate investment in agriculture. However, so-called mega agricultural public–private partnerships are by and large unproven and risky, and are likely to skew the benefits of investments towards the privileged and more powerful, while the risks fall on the most vulnerable. Oxfam concludes...

We study the problem of identifying the complete set of pairs of input patterns that can cause different types of hazards to appear at a circuit line. A novel methodology to implicitly identify all possible input configurations is proposed. The technique is based on a systematic derivation of the conditions for the occurrence of static and dynamic hazards at a line, which are subsequently formu...

We consider a model in which banking is characterized by asset substitution moral hazard and managerial under-provision of effort in loan monitoring. The privately-optimal bank leverage efficiently balances the benefit of debt in providing the discipline to ensure that the bank monitors its loans against the benefit of equity in attenuating asset-substitution moral hazard. However, when correla...

The study of wildfire has long been important to the residents of Los Angeles County, California. Of particular interest is the risk of a location burning given the time since the location’s last burn. Previous authors have investigated the impact of fuel age on the susceptibility of different areas to burning using techniques which are not optimal in the case where detailed spatial and tempora...

Agro-meteorological index insurance is an innovative agricultural insurance product that has solved problems of conventional agricultural insurances including excessive cost and moral hazard. Agro-meteorological index insurance has become an effective agricultural insurance scheme. This paper primarily uses meteorological data and winter wheat yield data in the Jiangsu Province for the last 35 ...

1 " Since perhaps the only meaningful distinction between man and machine is moral hazard, it may be too much to ask that banking reform eliminate all self-interested ... behavior. However, the mere recognition of the possibility of self-interest ... is a useful start. " 2

TESTING FOR MORAL HAZARD IN REINSURANCE MARKETS Zhiqiang Yan ABSTRACT This paper tests for the existence of residual moral hazard in the three largest reinsurance markets in the United States for the period 1995-2000, and finds that (1) residual moral hazard does not exist in private passenger auto liability, product liability and overall reinsurance markets; (2) residual moral hazard might exi...

This paper critically evaluates a recently introduced theory of the demand for health insurance. The new model makes a valuable contribution to the theoretical literature on moral hazard and the debate over national health insurance, but as a general explanation of the demand for health insurance it fails to provide a robust alternative to conventional theory. [

This paper is an empirical study of the market for managers, more speci…cally the e¤ects of agency, human capital, and preferences on their promotion, tenure, turnover and compensation. From a large longitudinal data set compiled from observations on executives and their publicly listed …rms, we construct a career hierarchy and report on its main features. Our summary results motivate a dynamic...