Banks as Catalysts for Industrialization
We provide a theoretical framework to address the historical debate about the role of banks in industrialization. We introduce banks into a model of...
The Profitability of Block Trades in Auction and Dealer Markets
The paper compares the trading costs for institutional investors who are subject to liquidity shocks, of trading in auction and dealer markets. The...
Collateral, Renegotiation and the Value of Diffusely Held Debt
Debt with many creditors is analyzed in a continuous-time pricing model of the levered firm. We specifically allow for debtor opportunism vis-a-vis a...
Financial Constraints, Precautionary Saving and Firm Dynamics
This paper proposes a structural model that analyses the way financing constraints affect investment, consumption and saving decisions of the...
Dealer Liquidity in an Auction Market: Evidence Fom the London Stock Exchange
We analyse the trade characteristics and market conditions which determine the market share of an electronic order book at the London Stock Exchange...
A Simple Model of an International Lender of Last Resort
This paper develops a simple model of an international lender of last resort (ILOLR). The World economy consists of many open economies, each with its...
Stock Price Patterns Around the Trades of Corporate Insiders on the London Stock Exchange
Previous work examined the long-run profitability of strategies mimicking the trades of company directors in the shares of their own company. However...
Firm Size and Cyclical Variations in Stock Returns
Recent imperfect capital market theories predict the presence of asymmetries in the variation of small and large firms' risk over the economic cycle...
Equity Finance, Adverse Selection and Product Market Competition
This paper analyses the effect of asymmetric information between a firm and its outside investors on the firm's competitive position in a model where...
Stock Price Patterns Around the Trades of Corporate Insiders on the London Stock Exchange
This paper examines the patterns of security returns around the trades of corporate insiders in the shares of their own company. We find patterns in...
Insider Trading, Investment and Liquidity: A Welfare Analysis
We compare equilibrium trading outcomes with and without participation by an informed insider, assuming inflexible ex ante aggregate investment...
Time Series of Commodity Futures Prices
This paper examines the pattern of volatility over time of a series of commodity futures prices, and focuses in particular on the futures price...
Contrasting Different Forms of Price Stickiness: An Analysis of Exchange Rate Overshooting and the Beggar Thy Neighbour Policy
This paper considers a two country economy similar to that in Obstfeld and Rogoff (1995). We build on their model by distinguishing between sticky...
Financing Entrepreneurs: Optimal Contracts and the Role of Intermediaries
I study an economy in which entrepreneurs seek financing for longterm projects from capital-constrained intermediaries, who specialise in monitoring...
Modelling Bid-Ask Spreads in Competitive Dealership Markets
In competitive dealership markets, several transactions may take place within the same time interval so that observed prices cannot be ordered...
