Template-Type: ReDIF-Paper 1.0
Title: Limited Liability and the Trade-off between Risk and Incentives
Author-Name: Matthias Kräkel
Author-Email: m.kraekel@uni-bonn.de
Classification-JEL: D01; D82; J3; M5
Keywords: limited liability; piece rates; risk aversion
Abstract: everal empirical findings have challenged the traditional
	trade-off between risk and incentives. By combining risk aversion and 
	limited liability in a standard principal-agent model the empirical
	puzzle on the positive relationship between risk and incentives can be
	explained.
Note: 
Length: 9
Creation-Date: 2007-04
Revision-Date: 
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse3_2007.pdf
File-Format: application/pdf
Handle: RePEc:bon:bonedp:bgse3_2007