Zou Wenjie

(Military Economics Academy of PLA, China)

 

 

Abstract: A specialized and efficient military performance appraising mechanism is of great significance to the Armed Forces. On the basis of orthodox principal agent theory, this paper introduces discount rate to make another commitment constraint besides of participation constraint and incentive compatible constraint of service personnel. Recommendations on military performance appraising mechanism are to be proposed through a rigorous mathematical analysis here.

 

 

Key words: performance appraising; participation constraint; incentive compatible constraint; recessive constraint

 

JEL code: P4