Bruno Biais, Thomas Mariotti, Jean-Charles Rochet, and Stéphane Villeneuve, Large Risks, Limited Liability, and Dynamic Moral Hazard, Econometrica, vol. 78, n. 1, January 2010, pp. 73–118.

JEL codes

  • C61: Optimization Techniques • Programming Models • Dynamic Analysis
  • D82: Asymmetric and Private Information • Mechanism Design
  • D86: Economics of Contract: Theory
  • D92: Intertemporal Firm Choice, Investment, Capacity, and Financing