Incentive Contracts and Downside Risk Sharing

Incentive Contracts and Downside Risk Sharing
Author: Bernard Sinclair-Desgagne
Publisher:
Total Pages: 30
Release: 2017
Genre:
ISBN:

This paper seeks to characterize incentive compensation in a static principal-agent moral hazard setting in which both the principal and the agent are prudent (or downside risk averse). We show that optimal incentive pay should then be `approximately concave' in performance, the approximation being closer the more downside risk averse the principal is compared to the agent. Limiting the agent's liability would improve the approximation, but taxing the principal would make it coarser. The notion of an approximately concave function we introduce here to describe optimal contracts is relatively recent in mathematics; it is intuitive and translates into concrete empirical implications, notably for the composition of incentive pay packages. We also clarify which measure of prudence - among the various ones proposed in the literature - is relevant to investigate the tradeoff between downside risk sharing and incentives.

Proceedings

Proceedings
Author: American Institute for Decision Sciences. Meeting
Publisher:
Total Pages: 726
Release: 1977
Genre: Decision making
ISBN:

The Oxford Handbook of Health Economics

The Oxford Handbook of Health Economics
Author: Sherry Glied
Publisher: OUP Oxford
Total Pages: 992
Release: 2013-05-23
Genre: Business & Economics
ISBN: 0191667161

The Oxford Handbook of Health Economics provides an accessible and authoritative guide to health economics, intended for scholars and students in the field, as well as those in adjacent disciplines including health policy and clinical medicine. The chapters stress the direct impact of health economics reasoning on policy and practice, offering readers an introduction to the potential reach of the discipline. Contributions come from internationally-recognized leaders in health economics and reflect the worldwide reach of the discipline. Authoritative, but non-technical, the chapters place great emphasis on the connections between theory and policy-making, and develop the contributions of health economics to problems arising in a variety of institutional contexts, from primary care to the operations of health insurers. The volume addresses policy concerns relevant to health systems in both developed and developing countries. It takes a broad perspective, with relevance to systems with single or multi-payer health insurance arrangements, and to those relying predominantly on user charges; contributions are also included that focus both on medical care and on non-medical factors that affect health. Each chapter provides a succinct summary of the current state of economic thinking in a given area, as well as the author's unique perspective on issues that remain open to debate. The volume presents a view of health economics as a vibrant and continually advancing field, highlighting ongoing challenges and pointing to new directions for further progress.

Mastering the Risky Business of Public-Private Partnerships in Infrastructure

Mastering the Risky Business of Public-Private Partnerships in Infrastructure
Author: Manal Fouad
Publisher: International Monetary Fund
Total Pages: 61
Release: 2021-05-10
Genre: Business & Economics
ISBN: 1513576569

Investment in infrastructure can be a driving force of the economic recovery in the aftermath of the COVID-19 pandemic in the context of shrinking fiscal space. Public-private partnerships (PPP) bring a promise of efficiency when carefully designed and managed, to avoid creating unnecessary fiscal risks. But fiscal illusions prevent an understanding the sources of fiscal risks, which arise in all infrastructure projects, and that in PPPs present specific characteristics that need to be addressed. PPP contracts are also affected by implicit fiscal risks when they are poorly designed, particularly when a government signs a PPP contract for a project with no financial sustainability. This paper reviews the advantages and inconveniences of PPPs, discusses the fiscal illusions affecting them, identifies a diversity of fiscal risks, and presents the essentials of PPP fiscal risk management.

Sustainable Buildings

Sustainable Buildings
Author: Amjad Almusaed
Publisher: BoD – Books on Demand
Total Pages: 182
Release: 2018-07-18
Genre: Technology & Engineering
ISBN: 1789234026

This book has been written to represent the efficient applications of sustainability upon building designs. The book intends to illustrate various techniques of action of sustainability on building conceptions. The book is divided into four parts and eight chapters. Part I "Introduction into Target Theme" includes a chapter with title "Introductory Chapter." It makes an overview of the meaning and the target of sustainable building and sustainable building material. Part II "Sustainable Building Design, Process, and Management" discusses many forms and concepts of sustainable building and includes three chapters. Part III "Sustainable Building by Using Energy Efficiency in Building Design" includes one chapter. Part IV "Sustainability in Building Materials: Study Cases" includes three chapters.

Airline Economics in Asia

Airline Economics in Asia
Author: Xiaowen Fu
Publisher: Emerald Group Publishing
Total Pages: 313
Release: 2018-11-30
Genre: Business & Economics
ISBN: 1787545660

Covers low-cost carrier growth in Japan, competition against full service hub carriers in the Middle East, aviation market liberalization in Central Asia, high-speed-rail and airline competition in China, air transport and tourism in Asia and Australia, airline performance and outsourcing, airports development, and airport-airline cooperation.

Computational Finance 1999

Computational Finance 1999
Author: Yaser S. Abu-Mostafa
Publisher: MIT Press
Total Pages: 744
Release: 2000
Genre: Business & Economics
ISBN: 9780262511070

This book covers the techniques of data mining, knowledge discovery, genetic algorithms, neural networks, bootstrapping, machine learning, and Monte Carlo simulation. Computational finance, an exciting new cross-disciplinary research area, draws extensively on the tools and techniques of computer science, statistics, information systems, and financial economics. This book covers the techniques of data mining, knowledge discovery, genetic algorithms, neural networks, bootstrapping, machine learning, and Monte Carlo simulation. These methods are applied to a wide range of problems in finance, including risk management, asset allocation, style analysis, dynamic trading and hedging, forecasting, and option pricing. The book is based on the sixth annual international conference Computational Finance 1999, held at New York University's Stern School of Business.