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We analyze the contracting structure in a moral hazard setting with several agents where output is produced jointly and is the only contractible variable. Since the salary of each agent is a function of all agents efforts, a positive externality arises between them. This externality is not internalised by a centralised structure where the principal contracts directly with each agent. Instead, w...

We analyze the nature of financial contracting when an entrepreneur can choose the specificity of investments and financial contracts are incomplete. Investing in projectspecific assets increases productivity but decreases liquidation value. This creates a strategic incentive to specialize assets to decrease the bargaining power of the financier when debt financing is used. By contrast, equity ...

This paper discusses how Mozambique coped with the health system needs in terms of specialized doctors since independence, in a troubled context of war, lack of financial resources and modifying settings of foreign aid. The Ministry of Health (MOH) managed to make up for its severe scarcity of specialist MDs especially through contracting expatriate technical assistance. Different scenarios, pa...

We draw a certain analogy between the classical information–theoretic problem of lossy data compression (source coding) of memoryless information sources and the statistical mechanical behavior of a certain model of a chain of connected particles (e.g., a polymer) that is subjected to a contracting force. The free energy difference pertaining to such a contraction turns out to be proportional t...

We draw a certain analogy between the classical information–theoretic problem of lossy data compression (source coding) of memoryless information sources and the statistical mechanical behavior of a certain model of a chain of connected particles (e.g., a polymer) that is subjected to a contracting force. The free energy difference pertaining to such a contraction turns out to be proportional t...