We develop a dynamic agency model in which the agent controls current earnings via short-term effort and firm growth via long-term effort and the firm is subject to both shortand long-run shocks. Under the optimal contract, agency conflicts can induce both overand underinvestment in shortand long-term efforts compared to first best, leading to shortor long-termism in corporate policies. Exposur...

This paper shows that bonus contracts may arise endogenously as a response to agency problems within banks, and analyzes how compensation schemes change in reaction to anticipated bail-outs. If there is a risk-shifting problem, bail-out expectations lead to steeper bonus schemes and even more risk-taking. If there is an effort problem, the compensation scheme becomes flatter and effort decrease...

Lead Authors (LA) Frank Dentener (Joint Research Center, Italy) Dolf Gielen (United Nations Industrial Development Organization) Arnulf Grubler (International Institute for Applied Systems Analysis, Austria and Yale University, USA) Jessica Jewell (Central European University, Hungary) Zbigniew Klimont (International Institute for Applied Systems Analysis, Austria) Volker Krey (International In...

Sense of agency (SoA) is a compelling but fragile experience that is augmented or attenuated by internal signals and by external cues. A disruption in SoA may characterise individual symptoms of mental illness such as delusions of control. Indeed, it has been argued that generic SoA disturbances may lie at the heart of delusions and hallucinations that characterise schizophrenia. A clearer unde...

This case study describes how the Ministry of Trade and Industry and the Infocomm Development Authority, as lead agencies, jointly initiated and managed the implementation of a one-stop business licensing portal called OBLS (Online Business Licensing Service, https://licenses.business.gov.sg/) in the Singapore public sector. While the mandate from the top for this strategic cross-agency project...

Research on human interaction has shown that attributing agency to another agent has substantial consequences for the way we perceive and evaluate its actions. Specifically, considering an agent’s actions related to either effort or ability can have important consequences for the attribution of responsibility. This study indicates that participants’ interpretation of a robot failure in terms of...

Officials from the National Institute of Occupational Safety and Health (NIOSH) recommended that hospitals and other healthcare employers adopt measures, including the use of needleless and safe-needle devices, to prevent injuries and illnesses from accidental needlesticks in the workplace. “Today’s healthcare workforce faces a multitude of risks,” said NIOSH Director Linda Rosenstock, MD, MPH....

How do I know that I am the person who is moving? According to Wittgenstein (1958), the sense of agency involves a primitive notion of the self used as subject, which does not rely on any prior perceptual identification and which is immune to error through misidentification. However, the neuroscience of action and the neuropsychology of schizophrenia show the existence of specific cognitive pro...

At an historic White House bill-signing ceremony on August 151994, Public Law 103-296-Social Security Independence and Program Improvements Act of 1994-was signed into law. President Bill Clinton symbolically used one of the pens President Franklin Roosevelt had used when he signed the original Social Security Act 59 years ago, on August 14,1935. The new legislation officially separates the Soc...