Econometrics of contracts: an assessment of developments in the empirical literature on contracting

Masten, Scott E.; Saussier, Stéphane

doi:10.1017/cbo9780511613807.016

Cited by 80 publications

(76 citation statements)

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“…For each player in a supply chain the choice will be over how many attributes to provide information on and at what level of precision. Masten and Saussier (2000) appraised the empirical literature on contracts and identified two main strategies for modelling contract decisions. One possibility is to formulate the contracting decision as a discrete choice; the other is to model the duration of the contract.…”

Section: Theoretical and Discrete Choice Models Of Traceability Implementioning

confidence: 99%

“…While the expected returns from alternative contractual arrangements are difficult to estimate, a number of observable proxies (such as the size or productivity of the farm, or characteristics of the farmer) can be used to identify differences associated with observed contract choices. An error term captures either omitted variables or misperceptions by the decision maker of the true values of each contractual arrangement (Masten and Saussier, 2000). To estimate this discrete choice empirically, we use the probability or likelihood of observing a specific decision.…”

Section: Theoretical and Discrete Choice Models Of Traceability Implementioning

confidence: 99%

“…If we observe that a farmer chooses to adopt EurepGAP rather than integrated protection orchard management, we conclude that the traceability associated with EurepGAP has a higher value to the farmer. As Masten and Saussier (2000) propose, the observed contractual arrangements result in a discrete choice as shown in the following empirical model:…”

Section: Approach To Empirical Estimationmentioning

confidence: 99%

See 2 more Smart Citations

Traceability adoption at the farm level: An empirical analysis of the Portuguese pear industry

Monteiro

Caswell

2009

Food Policy

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Section: Theoretical and Discrete Choice Models Of Traceability Implementioning

confidence: 99%

Section: Theoretical and Discrete Choice Models Of Traceability Implementioning

confidence: 99%

Section: Approach To Empirical Estimationmentioning

confidence: 99%

See 1 more Smart Citation

Traceability adoption at the farm level: An empirical analysis of the Portuguese pear industry

Monteiro

Caswell

2009

Food Policy

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“…Perhaps the most influential work has been Kawasaki and McMillan (1987) (KM hereafter). Many recent developments of the state of econometric practices and empirical evidence, based on this and related models, have been surveyed in Masten and Saussier (2002) and Chiappori and Salanie (2003). Significant work is still in progress.…”

Section: Introductionmentioning

confidence: 99%

“…The present study concentrates mostly on the second type of contracts. The reader may refer toMasten and Saussier (2002) for a review of econometric studies dealing with the choice of market versus contracts. 4 Though somewhat dated, the early exposition byRees (1985a, b) contains very useful insights about the principal agent models.…”

mentioning

confidence: 99%

Estimating the Parameters of Principal Agent Models

Rao

2015

J. Quant. Econ.

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The estimation of principal agent models is a subset of inverse optimal problems. As of now there is no consistent method of estimating all its parameters. In general, some proxies for the parameters have been utilized to test plausible economic implications of such models. This study develops a method of estimation for all the parameters using a very limited time series data for one contracting pair. Progress towards empirical reality, based on stylized facts, has been achieved by iteratively modifying the theoretical models and econometric methods. One of these results provides a theoretical justification for the econometric tools utilized in practice as well. However, a fundamental modification of the underlying assumptions is necessary. Given the emphasis on contracts in economic exchange it is necessary to develop the methods further. The study also outlines some of the pertinent issues.

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Coordination of Winegrape Supply Chains in Emerging Markets

et al. 2017

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This study investigates factors influencing coordination of winegrape procurement in emerging wine regions in Michigan, Missouri, and New York. Wineries in these emerging regions face different vertical coordination challenges than in well‐established regions, which may affect procurement choices. Results corroborate prior findings that quality considerations and the need to safeguard investments in specialized assets, respectively, increase usage of more formal coordination mechanisms like written contracts and vertical integration or ownership. Consistent with prior findings of studies of wineries in established wine regions, we find that perceived difficulty in measuring grape quality attributes leads to tighter coordination; a point previously undocumented for emerging regions. [EconLit citation: Q130]

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Econometrics of contracts: an assessment of developments in the empirical literature on contracting

Cited by 80 publications

References 0 publications

Traceability adoption at the farm level: An empirical analysis of the Portuguese pear industry

Traceability adoption at the farm level: An empirical analysis of the Portuguese pear industry

Estimating the Parameters of Principal Agent Models

Coordination of Winegrape Supply Chains in Emerging Markets

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