Sunk Costs and Competitiveness of European Banks after Deregulation
This paper investigates the determinants of the structure of the banking industry by fitting a monopolistic competition model to a sample of banks...
Informed Trading, Investment, and Welfare
This paper studies the welfare economics of informed trading in a stock market. We provide a model in which all agents are rational and trade either...
Should Speculators be Taxed?
A number of economists have supported the taxation of speculation in financial markets. We examine the welfare economics of such a tax in a model of...
Managers, Debt and Industry Equilibrium
This paper reconsiders the strategic effect of debt under the assumption that quantity choices are made by managers whose objective is to avoid...
Block Premia in Transfers of Corporate Control
This paper studies block trades and tender offers as alternative means for transferring corporate control in firms with a dominant minority...
Testing the Robustness of Long-Term Under-Performance of UK Initial Public Offerings
We re-examine the evidence on the long-term returns of IPOs in the UK using a new dataset of firms over the period 1985-95, in which we compare...
Caution and Conservatism in Monetary Policymaking
This paper shows that imperfect monetary control induces caution in the setting of monetary policy, leading to improved credibility at the expense of...
Post-IPO Directors' Sale and Reissuing Activity: An Empirical Test of IPO Signalling Models
Signalling models of IPO underpricing argue that owners of high-quality firms signal their high quality by underpricing shares sold at the IPO and...
The Cost of Conservatism: Extreme Returns, Value-at Risk, and the Basle Multiplication Factor
We argue that most current methodologies for value-at-risk (VaR) underestimate the VaR, and are therefore ill-suited for market risk capital. Better...
The Inflation Target Five Years On
This paper represents the speech delivered by Mervyn King, Bank of England, at the London School of Economics, Wednesday 29th October at 5.30pm.
Disclosure Requirements and Stock Exchange Listing Choice in an International Context
We use a rational expectations model to examine how public disclosure requirements affect listing decisions by rent-seeking corporate insiders, and...
