EBSLG

 

 
European Business Schools Librarian's Group
Home About Series Subject/JEL codes Advanced Search
HEC Paris. Research Department Les Cahiers de Recherche - HEC Paris
 

No 788:
Occupational Choice, Incentives and Wealth Redistributions with Scarcity of Capital

Alessandro CITANNA () and Archishman CHAKRABORTY ()

Abstract: In a matching model of firm formation with moral hazard, we characterize the equilibrium for economies with scarcity of capital and study the effects of redistributive taxation. We give necessary and sufficient conditions determining the equilibrium matching patterns, payoffs and interest rate. These depend only on aggregate wealth and the median wealth relative to the active population, compared to setup costs and technological parameters. We confirm previous results, showing that monotonic job specialization typically obtains when incentives are asymmetric within firms. Redistributive taxation now propagates its effects through the asset market and there may wealth nonmonotonic interest groups over median changes.

Keywords: Incentive; wealth distribution; (follow links to similar papers)

JEL-Codes: D20; D31; D50; D82; (follow links to similar papers)

29 pages, November 1, 2002

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

7bdb77ad561d9cb4ffb7b2f8085575ca.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Sandra Dupouy ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design Joakim Ekebom

Handle: RePEc:ebg:heccah:0788 This page was generated on 2014-12-14 17:56:19