Optimal Incentive Contracts in the Presence of Career Concerns

Optimal Incentive Contracts in the Presence of Career Concerns
Author: Robert Gibbons
Publisher:
Total Pages: 70
Release: 1991
Genre: Compensation management
ISBN:

This paper studies career concerns -- concerns about the effects of current performance on future compensation -- and describes how optimal incentive contracts are affected when career concerns are taken into account. Career concerns arise frequently: they occur whenever the market uses a worker's current output to update its belief about the worker's ability and competition then forces future wages (or wage contracts) to reflect these updated beliefs. Career concerns are stronger when a worker is further from retirement, because a longer prospective career increases the return to changing the market's belief. In the presence of career concerns, the optimal compensation contract optimizes total incentives -- the combination of the implicit incentives from career concerns and the explicit incentives from the compensation contract. Thus, the explicit incentives from the optimal compensation contract should be strongest when a worker is close to retirement. We find empirical support for this prediction in the relation between chief-executive compensation and stock-market performance.

Modern Labor Economics

Modern Labor Economics
Author: Ronald G. Ehrenberg
Publisher: Routledge
Total Pages: 813
Release: 2021-08-23
Genre: Business & Economics
ISBN: 1000397874

Modern Labor Economics: Theory and Public Policy, now in its fourteenth edition, continues to be the leading text for one-semester courses in labor economics at the undergraduate and graduate levels. It offers a thorough overview of the modern theory of labor market behavior and reveals how this theory is used to analyze public policy. Designed for students who may not have extensive backgrounds in economics, the text balances theoretical coverage with examples of practical applications that allow students to see concepts in action. The authors believe that showing students the social implications of the concepts discussed in the course will enhance their motivation to learn. Consequently, this text presents numerous examples of policy decisions that have been affected by the ever-shifting labor market. This new edition continues to offer the following: a balance of relevant, contemporary examples coverage of the current economic climate an introduction to basic methodological techniques and problems tools for review and further study This fourteenth edition presents updated data throughout and a wealth of new examples, such as the impact of COVID-19 lockdowns, gig work, nudges, monopsony power in the technology industry, and the effect of machine learning on inequality. Supplementary materials for students and instructors are available on the book’s companion website.

Modern Labor Economics

Modern Labor Economics
Author: Ronald G. Ehrenberg
Publisher: Routledge
Total Pages: 1272
Release: 2017-07-28
Genre: Business & Economics
ISBN: 1351595261

Modern Labor Economics: Theory and Public Policy, now in its thirteenth edition, continues to be the leading text for one-semester courses in labor economics at the undergraduate and graduate levels. It offers a thorough overview of the modern theory of labor market behavior, and reveals how this theory is used to analyze public policy. Designed for students who may not have extensive backgrounds in economics, the text balances theoretical coverage with examples of practical applications that allow students to see concepts in action. Experienced educators for nearly four decades, co-authors Ehrenberg and Smith believe that showing students the social implications of the concepts discussed in the course will enhance their motivation to learn. As such, this text presents numerous examples of policy decisions that have been affected by the ever-shifting labor market. This new edition continues to offer: a balance of relevant, contemporary examples; coverage of the current economic climate; introduction to basic methodological techniques and problems; tools for review and further study. In addition to providing updated data and examples throughout, the thirteenth edition offers greater coverage of inequality, healthcare policy, and labor-replacing technologies. The text is also supported by a full range of companion online materials.

Managing Through Incentives

Managing Through Incentives
Author: Richard B. McKenzie
Publisher: Oxford University Press, USA
Total Pages: 348
Release: 1998
Genre: Business & Economics
ISBN: 0195119010

This text explains how firms can improve the performance of the people on whom they depend - workers, customers, suppliers, stockholders - by managing the incentives system better. The author argues that incentives are not just a matter of money, but a range of factors which provide a set of rewards that encourage people to work towards a common goal of organizational success.

Innovation and Marketing in the Pharmaceutical Industry

Innovation and Marketing in the Pharmaceutical Industry
Author: Min Ding
Publisher: Springer Science & Business Media
Total Pages: 763
Release: 2013-10-31
Genre: Medical
ISBN: 1461478014

The pharmaceutical industry is one of today’s most dynamic and complex industries, involving commercialization of cutting-edge scientific research, a huge web of stakeholders (from investors to doctors), multi-stage supply chains, fierce competition in the race to market, and a challenging regulatory environment. The stakes are high, with each new product raising the prospect of spectacular success—or failure. Worldwide revenues are approaching $1 trillion; in the U.S. alone, marketing for pharmaceutical products is, itself, a multi-billion dollar industry. In this volume, the editors showcase contributions from experts around the world to capture the state of the art in research, analysis, and practice, and covering the full spectrum of topics relating to innovation and marketing, including R&D, promotion, pricing, branding, competitive strategy, and portfolio management. Chapters include such features as: · An extensive literature review, including coverage of research from fields other than marketing · an overview of how practitioners have addressed the topic · introduction of relevant analytical tools, such as statistics and ethnographic studies · suggestions for further research by scholars and students The result is a comprehensive, state-of-the-art resource that will be of interest to researchers, policymakers, and practitioners, alike.

Corporate Governance in the US and Global Settings

Corporate Governance in the US and Global Settings
Author: Kose John
Publisher: Emerald Group Publishing
Total Pages: 290
Release: 2014-11-20
Genre: Business & Economics
ISBN: 1784412910

Volume 17 of Advances in Financial Economics, entitled "Corporate Governance in the US and Global Settings" will provide further insights into corporate governance in the US & global economic and financial environment by publishing international, within-country and cross-country comparative studies.

The Recurrent Crisis in Corporate Governance

The Recurrent Crisis in Corporate Governance
Author: P. MacAvoy
Publisher: Springer
Total Pages: 163
Release: 2003-10-14
Genre: Business & Economics
ISBN: 1403946884

Since the mid-1980s two crises have overtaken governance of the American corporation - the loss of competitiveness in the 1980s and the loss of investor trust in financial management in the late 1990s. This book proposes specific changes in conduct to resolve these crises, principally by putting the board of directors in charge of management. This detailed analysis and critique of performance of current governance specifies reforms that will make that possible. The reforms are tightly connected to the authors' analysis of the causes of breakdowns in the largest corporations in which management has been subject to criminal and civil investigation.

High-Performance Government

High-Performance Government
Author: Robert Klitgaard
Publisher: Rand Corporation
Total Pages: 496
Release: 2005-03-24
Genre: Law
ISBN: 0833040677

In 2003, the National Commission on the Public Service, chaired by Paul Volcker, issued a report detailing problems within the federal government today and recommending changes in its organization, leadership, and operations. This book suggests practical ways to implement the recommendations and defines a research agenda for the future. Thirteen essays address the primary problem areas identified by the Volcker Commission, and the commission report itself is included.

Legislative Entrepreneurship in the U.S. House of Representatives

Legislative Entrepreneurship in the U.S. House of Representatives
Author: Gregory Wawro
Publisher: University of Michigan Press
Total Pages: 208
Release: 2010-09-23
Genre: Political Science
ISBN: 0472022482

When members are elected to the House of Representatives they have a certain freedom to decide how they will act as members and how they will build their reputations. Just as in the market place entrepreneurs build businesses, so in the House of Representatives members have the freedom to choose to build legislative programs that will enhance their reputations in the institution. And yet entrepreneurship is also costly to members. Gregory Wawro explains why members of the House engage in legislative entrepreneurship by examining what motivates them to acquire policy knowledge, draft legislation, build coalitions, and push their legislation in the House. He considers what incentives members have to perform what many have perceived to be the difficult and unrewarding tasks of legislating. This book shows how becoming a legislative entrepreneur relates to members' goals of reelection, enacting good public policy, and obtaining influence in the House. The analysis differs from previous studies of this behavior, which for the most part have employed case study methods and have relied on anecdotal evidence to support their arguments. Wawro analyzes legislative entrepreneurship in a general and systematic fashion, developing hypotheses from rational-choice-based theories and testing these hypotheses using quantitative methods. Wawro argues that members engage in legislative entrepreneurship in order to get ahead within the House. He finds that the more legislative entrepreneurship that members engage in, the more likely it is that they will advance to prestigious positions. This book is of interest to students of Congress, legislative behavior and institutions, elections, and campaign finance. Gregory Wawro is Assistant Professor of Political Science, Columbia University.

Handbook of Empirical Corporate Finance SET

Handbook of Empirical Corporate Finance SET
Author: Bjørn Espen Eckbo
Publisher: Elsevier
Total Pages: 1137
Release: 2008-12-23
Genre: Business & Economics
ISBN: 0080559565

This two-volume set summarizes recent research on corporate decision-making. The first volume covers measurement and theoretical subjects as well as sources of capital, including banks, public offerings, and private investors. In the second volume, contributors focus on the ways corporations are structured and the practices through which they can be bought and sold. Thus, its major subjects include dividends, capital structure, financial distress, takeovers, restructurings, and managerial incentives. - Takes stock of the main empirical findings to date across an unprecedented spectrum of corporate finance issues - Discusses everything from econometric methodology, to raising capital and capital structure choice, and to managerial incentives and corporate investment behavior - Contributors are leading empirical researchers that remain active in their respective areas of expertise - Writing style makes the chapters accessible to industry practitioners