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In this paper we investigate a wide class of principal-agent problems with moral hazard and target budgets. The latter requires that the principal fixes a total budget for the wages paid to agents regardless of their outputs realized ex post. Target budgets are relevant not just because they are exogenous institutional constraints in some cases, but they can also endogenously arise in other cases, especially when agents' performances are not verifiable and thus the principal needs subjectivedoi:10.2139/ssrn.3116587 fatcat:n4xjnja2qnbvpa2i7enxbi6poi