Low outcomes and the first-order approach to agency problems

• Autores: Oscar Gutiérrez González
• Localización: Investigaciones económicas, ISSN 0210-1521, Vol. 31, Nº 2, 2007, págs. 343-348
• Idioma: inglés
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• Resumen

  • This paper claims that the first-order approach to agency problems can only hold if the likelihood ratio is bounded from below. None of the classic sets of su..cient conditions to validate it (Mirrlees-Rogerson (1979-1985) and Jewitt (1988)) guarantees such a condition