English, Article, Journal or magazine article edition: The Macroeconomics of Delegated Management J.B. Donaldson; J.P. Danthine

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/56986
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Macroeconomics of Delegated Management
Author
  • J.B. Donaldson
  • J.P. Danthine
Physical Description
  • preprint
Notes
  • We are interested in the macroeconomic implications of the separation of ownership and control. We propose an alternative decentralized interpretation of the stochastic growth model, one where shareholders hire a self-interested manager who is in charge of the firm’s hiring and investment decisions. Under imperfect monitoring and incomplete contracting, delegation is seen to give rise to a generic conflict of interests between shareholders and managers. This conflict fundamentally results from the different income base of both types of agents, once aggregate market clearing conditions are taken into account. We derive the dynamic consequences of this divergence in intertemporal marginal rates of substitution and discuss the likelihood that appropriate incentive contracts offered the manager will mitigate the consequences of this divergence
  • business cycles, delegated management, contracting
  • RePEc:red:sed004:289
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment