Bengt Holmström is a renowned economist who has made significant contributions to the field, particularly in contract theory, corporate finance, and incentive design. Here are some of his most notable works:
* "Moral Hazard and Observability" (1979): This seminal paper laid the foundation for much of the work on moral hazard and incentive contracts. It analyzes how the design of contracts must take into account the difficulty of observing an agent's actions, and how this difficulty can lead to inefficiency.
* "Contractual Incentives and the Firm: A Discussion" (1982): This paper explores the use of contracts to motivate employees within firms. It argues that firms must carefully consider the incentives provided by contracts to ensure that they align with the firm's goals.
* "The Theory of the Firm: An Inquiry into the Economics of Production" (1984): This book, co-authored with Sanford Grossman, provides a comprehensive treatment of the theory of the firm. It analyzes the role of contracts in shaping the relationships between firms, their employees, and their customers.
* "Managerial Incentive Contracts: Theory and Evidence" (1999): This paper, co-authored with Paul Milgrom, examines the theoretical foundations of managerial incentive contracts and provides empirical evidence on their effectiveness.
These are just a few examples of Holmström's many important contributions to economics. He has also written extensively on topics such as the economics of innovation, the design of financial markets, and the role of government in the economy. He was awarded the Nobel Prize in Economics in 2016 for his work on contract theory.
If you're interested in learning more about Bengt Holmström's work, you can find his publications on websites like Google Scholar and JSTOR.