Goerke (2001) suggests that the relationship between wages and monitoring intensity can be positive in efficiency wage models, without constituting a refutation of the shirking theory. Nevertheless, there are several features of the model that can undermine this insightful analysis. This comment aims to highlight the problems that arise when the monitoring intensity is endog-enized the way suggested by the author and to present the proof that using Cobb-Douglas function is under the current set-up not feasible.
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