CORDIS Project
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This project explores the application of dynamic incentive theory in various fields, including corporate finance and public finance. It aims to develop new frameworks to analyze contract design and the implications of financial regulations, enhancing understanding of economic behaviors.
Informational frictions lead to inefficient allocations, reducing welfare.
Dynamic incentive theory offers a powerful conceptual framework to analyse the optimal design of contracts and mechanisms mitigating these inefficiencies.
Its technical difficulty and abstractness, however, have limited its applications.
The objective of this project is to develop new frameworks to enhance the applicability of dynamic incentive theory and address important unanswered applied questions: 1) In corporate f…
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