The structure of bank relationships, endogenous monitoring and loan rates
This paper investigates, in a simple model of overlapping moral hazard problems between banks and firms, how the number of bank relationships affect...
Signalling with debt and equity: a unifying approach and its implications for the pecking order hypothesis and competitive credit rationing
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...
Efficiency Properties of Rational Expectations Equilibria With Asymmetric Information
In this paper we provide a characterization of the welfare properties of rational expectations equilibria of economies in which, prior to trading...
Efficiency properties of rational expectations equilibria with asymmetric information
In this paper we provide a characterisation of the welfare properties of rational expectations equilibria of economies in which, prior to trading...
Constrained indirect inference estimation
We develop generalised indirect inference procedures that handle equality and inequality constraints on the auxiliary model parameters. We also show...
Tests of the Fama and French Model in India
This study empirically examines the Fama-French three-factor model of stock returns for India. We find evidence for pervasive market, size, and book...
An Academic Response to Basel II
It is our view that the Basel Committee for Banking Supervision, in its Basel II proposals, has failed to address many of the key deficiencies of the...
Financing and Corporate Growth Under Repeated Moral Hazard
This paper considers the impact of financial contracting on growth by exploring a model where entrepreneurs initially do R&D but subsequently need...
The Skill Profile of Central Bankers and Supervisors
Using a new database covering some 91 supervisory agencies, this paper examines how important various skilled experts are in the regulatory process...
Housing market dynamics: on the contribution of income shocks and credit constraints
Two features distinguish residential real estate from financial assets: households’ consumption demand for a dwelling and the indivisibility of...
The impact of technology on cash usage
“Cash is dirty ... Cash is heavy ... Cash is inequitable ... Cash is quaint, technologically speaking ... Cash is expensive ... Cash is obsolete.”...
A structured GARCH model of daily equity return volatility
This paper estimates a structural times series model of return volatility. We argue that the structural time series approach to GARCH modelling first...
Agency conflicts, ownership concentration, and legal shareholder protection
This paper analyzes the interaction between legal shareholder protection, managerial incentives, monitoring, and ownership concentration. Legal...
Disclosures and asset returns
Public information in financial markets often arrives through the disclosures of interested parties who have a material interest in the reactions of...
Does one Soros make a difference?: a theory of currency crises with large and small traders
Do large investors increase the vulnerability of a country to speculative attacks in the foreign exchange markets? To address this issue, we build a...
