Statistical Model and Empirical Evidence

  • Wendelin Schnedler
Part of the Contributions to Economics book series (CE)


Building on the theoretical insights of the second chapter and their application to firm performance measures in the third chapter, this chapter examines the empirical evidence for the hypothesis that the value of firm performance measures results from the reduction of misallocation costs. Empirically, firm performance pay should be high whenever task descriptors indicate high distortion costs.


Firm Performance Incentive Scheme Incentive Effect Unobserved Component Relative Performance Evaluation 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2004

Authors and Affiliations

  • Wendelin Schnedler
    • 1
  1. 1.Department of Economics (CMPO)University of BristolBristolUK

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