Testing Contract Theory: A Survey of Some Recent Work

Pierre Chiappori and Bernard Salanié

No 738, CESifo Working Paper Series from CESifo

Abstract: While the theoretical literature on contracts has been enormous since the seventies, empirical tests of the theory have long remained scarce. However, new empirical work has been developed in the last ten years that sheds light on the empirical validation of the theory. This paper aims at surveying the recent empirical work on contracts. The focus throughout is on the need to properly account for unobserved heterogeneity.

Date: 2002
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Working Paper: Testing Contract Theory: A Survey of Some Recent Work (2002)
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