Date and Time: October 12th, 2016, 10:00 - 11:30 am
Room: A 101 in the Economics Building (Museum)
In the presence of limited liability, the incentive compatibility constraints in financial contracting models with asymmetric information are wekaer than assumed in much of the literature. In this paper, we identify the problem that has been overlooked in the literature and provide a rigorous proof of optimality of debt contracts under fairly general assumptions.
About the Speaker
Xiaojian Zhao is Assistant Professor at the Hong Kong University of Science and Technology. He received his PhD from the University of Mannheim, Germany in 2010. In his research he aims to explore the link between economic and social environment and human behaviors, which involves analyzing structural properties of economies and organizations, patterns of human behaviors, and the relation between them.