Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
884580 | Journal of Economic Behavior & Organization | 2008 | 11 Pages |
Abstract
We consider a model with a politician facing a multi-task problem while in office. The reelection mechanism distorts the allocation of effort in favor of tasks whose outcomes can be measured more precisely than others. We show that a combination of elections and incentive contracts can alleviate this inefficiency. The incentive contract does not require direct information about the performance of the politician and is self-financing across terms.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Hans Gersbach, Verena Liessem,