Credit Rationing May Involve Excessive Lending
It is typically assumed that equilibrium credit rationing implies insufficient lending. By combining hidden types and hidden action, this paper shows...
Beyond the Sample: Extreme Quantile and Probability Estimation
Economic problems such as large claims analysis in insurance and value-at-risk in fi- nance, require assessment of the probability P of extreme...
Housing Market Fluctuations in a Life-Cycle Economy with Credit Constraints
This paper presents a first step towards a new theory of housing market fluctuations. We develop a life-cycle model where agents face credit...
Asset Allocation Dynamics and Pension Fund Performance
Using a data set on more than 300 UK pension funds' asset holdings, this paper provides a systematic investigation of the performance of managed...
Close-Relationships Between Banks and Firms: Is It Good or Bad
This paper investigates the issues involved in cross-ownership between banks and firms. The idea is that congruity among the parties in control of the...
Close Relationships between Banks and Firms: Is it Good or Bad?
This paper investigates the issues involved in cross-ownership between banks and firms. The idea is that congruity among the parties in control of the...
The Retreat of Inflation and The Making of Monetary Policy: Where Do We Stand?
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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...