Discussion Papers

This paper examines the extent to which swings in stock prices can be related to variations in the discounted value of expected future dividends when...

This paper provides a theory of diversification and financial structure of banks. It shows that by diversifying the bank portfolio and financing it...

A Generalized Method of Moments estimation of the determinants of dollar/yen bid–ask spreads is undertaken. In particular, a long time-series of daily...

This article documents the fact that when debtors decide to default on their obligations too early, it is in the creditors’ collective interest, as...

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Empirical evidence suggests that capital market constraints prevent low-wealth individuals from setting up in business. This may be attributable to...

To what extend can optimal contracts and renegotiation designs alleviate equity market failure due to asymmetric information and transactions costs...

The paper reviews firms' motives for seeking publicly traded rather than privately held finance. Factors that play a role are the need to provide a...

Financially Intermediated and Stock Market consumption-investment allocations, with and without governmental interventions, are compared in a welfare...

We develop a model of monetary and fiscal policy where the time inconsistency of optimal monetary policy is due to the effects of tax distortions. If...

Several authors have derived closed-form option prices in models where the underlying financial variable follows a diffusion process with the...

In this paper we, first, by explicitly taking account of the private sector's influence and pressure on the monetary authorities, provide a more...

The combination of post-takeover moral hazard by the bidder and free-riding by the target shareholders leads the former to acquire in a tender offer...

This paper argues that the ownership structure of a firm acts as a commitment device to delegate a certain degree of authority from the shareholders...

This paper examines alternative methods for making inferences about the value and dynamics of (unobserved) credit quality from market prices. Using...

This paper compares liquidity and informational efficiency in a computerized and a traditional open outcry market. We use data for the Nikkei Stock...