Discussion Papers

This paper investigates, in a simple model of overlapping moral hazard problems between banks and firms, how the number of bank relationships affect...

The paper sets out to tackle the following puzzle when insiders of a firm have more information than outside investors. The insiders' desire to sell...

In this paper we explain the apparent "diversification discount" of conglomerates without assuming inefficient-cross subsidisation through internal...

In this paper we provide a characterization of the welfare properties of rational expectations equilibria of economies in which, prior to trading...

We develop generalised indirect inference procedures that handle equality and inequality constraints on the auxiliary model parameters. We also show...

In this paper we provide a characterisation of the welfare properties of rational expectations equilibria of economies in which, prior to trading...

This study empirically examines the Fama-French three-factor model of stock returns for India. We find evidence for pervasive market, size, and book...

This paper considers the impact of financial contracting on growth by exploring a model where entrepreneurs initially do R&D but subsequently need...

Using a new database covering some 91 supervisory agencies, this paper examines how important various skilled experts are in the regulatory process...

Two features distinguish residential real estate from financial assets: households’ consumption demand for a dwelling and the indivisibility of...

“Cash is dirty ... Cash is heavy ... Cash is inequitable ... Cash is quaint, technologically speaking ... Cash is expensive ... Cash is obsolete.”...

This paper analyzes the interaction between legal shareholder protection, managerial incentives, monitoring, and ownership concentration. Legal...

Public information in financial markets often arrives through the disclosures of interested parties who have a material interest in the reactions of...

Do large investors increase the vulnerability of a country to speculative attacks in the foreign exchange markets? To address this issue, we build a...

This paper estimates a structural times series model of return volatility. We argue that the structural time series approach to GARCH modelling first...

Creditors of a distressed borrower face a coordination problem. Even if the fundamentals are sound, fear of premature foreclosure by others may lead...