Discussion Papers

It is often argued that asset prices exhibit patterns incompatible with the behaviour of rational, optimising agents. This paper proposes a rational...

We study the relation of financial development and the pace of technological advance in a dynamic agency theoretic model. A firm which is financed by...

Recent debate on the reform of the international financial architecture has highlighted the potentially important role of the official sector in...

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...

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

In this paper we provide a characterisation 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...

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...

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 Cash is obsolete.”...

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

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