Found 7 article(s) for author 'Oliver Hart'

The Inherent Failures of Long-Term Contracts — and How to Fix Them

The Inherent Failures of Long-Term Contracts — and How to Fix Them. Oliver Hart, September 3, 2019, Audio, “Oliver Hart, Nobel-winning Harvard economist, and Kate Vitasek, faculty at the University of Tennessee, argue that many business contracts are imperfect, no matter how bulletproof you try to make them. Especially in complicated relationships such as outsourcing, one side ends up feeling like they’re getting a bad deal, and it can spiral into a tit for tat battle. Hart and Vitasek argue that companies should instead adopt so-called relational contracts. Their research shows that creating a general playbook built around principles like fairness and reciprocity offers greater benefits to both businesses. Hart and Vitasek, with the Swedish attorney David Frydlinger, cowrote the HBR article “A New Approach to Contracts.”Link

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Nobel perspectives: Professor Oliver Hart

Nobel perspectives: Professor Oliver Hart. Oliver Hart, July 29, 2018, Audio, “To help address the big questions that shape our world, UBS has sought out a number of Nobel Laureates in the economic sciences to ask them to share insights, discuss their research and open their inquiring minds. This week we’re hearing from Oliver Hart, the Andrew E Furer Professor of Economics at Harvard University, and 2016 Nobel prize recipient. Hart discusses his recent focus on the theme of corporate social responsibility and how this fits in to his life’s work on the theory of the firm and contract theoryLink

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Liquidity and Inefficient Investment

Liquidity and Inefficient Investment. Oliver Hart, November 2013, Paper. “We study consumer liquidity in a general equilibrium model where the friction is the non-pledgeability of future income. Liquidity helps to overcome the absence of a double coincidence of wants. Consumers over-hoard liquidity and the resulting competitive equilibrium is constrained inefficient. Fiscal policy following a large negative shock can increase ex ante welfare. If the government cannot commit, the ex post optimal fiscal policy will be too small from an ex ante perspective…”  Link verified June 24, 2013

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Noncontractible Investments and Reference Points

Noncontractible Investments and Reference Points. Oliver Hart, August 14, 2013, Paper. “We analyze noncontractible investments in a model with shading. A seller can make an investment that affects a buyer’s value. The parties have outside options that depend on asset ownership. When shading is not possible and there is no contract renegotiation, an optimum can be achieved by giving the seller the right to make a take-it-or-leave-it offer. However, with shading, such a contract creates deadweight losses. We show that an optimal contract will limit the seller’s offers, and possibly create ex post inefficiency…”  Link verified August 14, 2013

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Tax shelters and the theory of the firm

Tax shelters and the theory of the firm. Oliver Hart, July 2, 2013, Paper. “Evaluations of economic substance often depend on an assessment of whether a particular party’s income claims look more like equity or debt, or on a present value calculation of the efficiency benefits of the transaction. The column argues that the property-theory of the firm provides an alternative and simpler approach. According to this theory, the fundamental question is: Did control change?…”  Link verified July 2, 2013

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Debt Enforcement Around the World

Debt Enforcement Around the World. Andrei Shleifer, Oliver Hart, 2008, Paper. “Insolvency practitioners from 88 countries describe how debt enforcement will proceed against an identical hotel about to default on its debt. We use the data on time, cost, and the likely disposition of the assets (preservation as a going concern vs. piecemeal sale) to construct a measure of the efficiency of debt enforcement in each country. This measure is strongly correlated with per capita income and legal origin and predicts debt market development. Several characteristics of debt enforcement procedures, such as the structure of appeals and…” Link

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