A Principal-Agent Model of Contracting in Major League Baseball

Traditional economic analyses of the reserve clause in major league baseball view it as having arisen from the superior bargaining of owners compared to players. This article interprets it instead as promoting efficient investment by teams in player development, given the transferability of player skills to other teams. Using a principal-agent framework, the article shows that limited player mobility emerges as part of the optimal contract between players (principals) and teams (agents).

OLDER WOMEN LIVING WITH HIV/AIDS

The purpose of this study is to fill a gap in the literature by investigating how an ignored population of women, women over age 50, copes with HIV/ AIDS. Older women are referred to as "invisible victims" with regard to HIV/AIDS. Previous research on coping with HIV/ AIDS focuses mostly on men. Of the research that does focus on women, older women are often overlooked. Although older women are a minority compared to other HIV-infected populations in the US, they are just as deserving of recognition and care as any other population. Data was collected through open-ended, in-depth interviews with four women individually. Recruitment of the sample is from several health institutions serving HIV/AIDS populations. The major topics discussed in the interviews include: demographics, what it is like to live with HIV or AIDS, and way of coping with HIV/ AIDS, including social support, religion, and health behaviors. The data analysis process is a qualitative one, with exploration of major themes and presentation of rich descriptions to illustrate those themes. Results from the data show that in terms of coping, all four participants found it most difficult to cope with a different aspect of living with HIV. Regardless of this finding, participants still employed similar coping strategies. As hypothesized, social support and religious/ spiritual support are important aspects in coping with HIV for all participants. The use of education as a coping mechanism was not an anticipated result. Yet, education was a constant theme, whether it was educating oneself about the disease to better understand it or educating others as to prevent them from contracting HIV. A variety of different positive coping strategies were employed by the participants in coping with their HIV, including altering negative health habits and staying optimistic. Negative coping strategies were also employed, but these seemed to be discussed less throughout the interviews. Overall, the results of this study demonstrate the resilience of these women in terms of finding ways of living with HIV instead of dying from HIV.

Measuring Potential Output and Output Gap and Macroeconomic Policy: The Case of Kenya

Measuring the level of an economy.s potential output and output gap are essential in identifying a sustainable non-inflationary growth and assessing appropriate macroeconomic policies. The estimation of potential output helps to determine the pace of sustainable growth while output gap estimates provide a key benchmark against which to assess inflationary or disinflationary pressures suggesting when to tighten or ease monetary policies. These measures also help to provide a gauge in the determining the structural fiscal position of the government. This paper attempts to measure Kenya.s potential output and output gap using alternative statistical techniques and structural methods. Estimation of potential output and output gap using these techniques shows varied results. The estimated potential output growth using different methods gave a range of .2.9 to 2.4 percent for 2000 and a range of .0.8 to 4.6 for 2001. Although various methods produce varied results, they however provided a broad consensus on the over-all trend and performance of the Kenyan economy. This study found that firstly, potential output growth is declining over the recent time and secondly, the Kenyan economy is contracting in the recent years.

Contractual Difficulties in Environmental Management and the Protection of Biodiversity: The Case of Conservation and Mitigation Banking

This paper offers a principal-agent model of feasible private contracting in mitigation and conservation banking aimed at the protection of natural habitat and bio-diversity of US wetlands and uplands. It is shown that while it is straightforward to design an incentive contract, such a contract may not achieve the federally mandated objective of no net loss of habitat. This is because the minimum payment required as an economic incentive to private agents may be greater than what they should receive for the habitat values that they actually created in the field. This possible problem is shown to derive from nonconvexity in the production possibility set between the biological value of land as natural habitat and in non-habitat uses such as in urban development. The paper concludes with a consideration of several institutional devises that may promote the convergence of private contracting and the attainment of no net loss. These include the payment of subsidies, greater accuracy in the identification of actual quality by the principal, and the use of several incentive alignment devises.