Recursive Contracts

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Show simple item record MARCET, Albert MARIMON, Ramon 2003-07-01T08:53:48Z 2003-07-01T08:53:48Z 1998 1998
dc.description.abstract We obtain a recursive formulation for a general class of contracting problems involving incentive constraints. These constraints make the corresponding maximization (sup) problems non recursive. Our approach consists of studying a recursive Lagrangian. Under standard general conditions, there is a recursive saddle point (infsup) functional equation (analogous to Bellman's equation) that characterizes the solution. Our approach applies to a large class of contractual problems, as examples, we study the optimal policies in a model intertemporal participation (default) constraints and a model with competitive constraints (as in Ramsey problems).
dc.format.extent 1170767
dc.format.medium In stock
dc.format.mimetype application/pdf
dc.language.iso en
dc.language.iso en
dc.publisher European University Institute
dc.relation.ispartofseries EUI ECO
dc.relation.ispartofseries 1998/37
dc.rights info:eu-repo/semantics/openAccess
dc.title Recursive Contracts en
dc.type Working Paper
dc.neeo.contributor MARCET|Albert|aut|
dc.neeo.contributor MARIMON|Ramon|aut|EUI70009
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