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作者：Dasgupta, Amil
作者单位：University of London; London School Economics & Political Science
摘要：Financial contagion is modeled as an equilibrium phenomenon in a dynamic setting with incomplete information and multiple banks. The equilibrium probability of bank failure is uniquely determined. We explore how the cross-holding of deposits motivated by imperfectly correlated regional liquidity shocks can lead to contagious effects conditional on the failure of a financial institution. We show that contagious bank failure occurs with positive probability in the unique equilibrium of the econo...
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作者：Guembel, Alexander; Sussman, Oren
作者单位：University of Oxford; University of Oxford; University of Oxford
摘要：Motivated by the observation that exchange-rate management resembles market-making, we use microstructure theory to conduct a welfare analysis of exchange-rate management, including the corner solutions of a free float and a fixed peg. We show that a policy that smoothes out exchange-rate fluctuations needs to trade off the welfare gain due to lower risk exposure of local producers against the trading losses that the policy would generate due to speculation. We identify the conditions under wh...
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作者：Coate, Stephen
作者单位：Cornell University
摘要：This paper presents a theory of political competition with campaign contributions and informative political advertising. Policy-motivated parties compete by selecting candidates and interest groups provide contributions to enhance the electoral prospects of like-minded candidates. Contributions are used to finance advertising campaigns that provide voters with information about candidates' ideologies. Voters update their beliefs rationally given the information they have received. The paper us...
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作者：Jehiel, Philippe; Moldovanu, Benny
作者单位：Institut Polytechnique de Paris; Ecole des Ponts ParisTech; University of London; University College London; University of Bonn
摘要：Government-sponsored auctions for production rights (e.g., license auctions, privatizations, etc.) shape the industry structure. Are there mechanisms that induce an efficient industry structure (at least when there are no positive costs to public funds)? The answer is no whenever firms have private information about both fixed and marginal costs. Our analysis also suggests that the second-best industry may either be more competitive or more monopolistic than the first-best one. These insights ...
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作者：Khwaja, Asim Ijaz
作者单位：Harvard University
摘要：This paper considers the impact of community participation on outcomes of development projects. It first offers a theoretical framework for participation by using the property rights literature to model how participation in an activity, in addition to involving information exchange, also results in greater influence in the activity. The model predicts that community participation may not always be desirable. The paper then uses primary data on development projects in Northern Pakistan to provi...
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作者：Baker, Michael; Hanna, Emily; Kantarevic, Jasmin
作者单位：University of Toronto; National Bureau of Economic Research
摘要：Marriage penalties are a controversial feature of many government policies. Empirical evidence of their behavioral effects is quite mixed, which is surprising because economic theory predicts that they should have an impact on the headship decision. We investigate the removal of marriage penalties from the surviving spouse pensions of the Canadian public pension system in the 1980s. These reforms provide a simple and transparent source of identification. Our results indicate that marriage pena...
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作者：Machin, Stephen; McNally, Sandra; Meghir, Costas
作者单位：University of London; University College London; University of London; London School Economics & Political Science
摘要：This paper reports on the short run impact of one of the U.K. government's flagship education policies, the Excellence in Cities (EiC) program. EiC is aimed specifically at alleviating poor student achievement in inner city areas. The analysis compares educational attainment in Maths and English for Year 9 (age 14) students before and after EiC introduction in EiC schools as compared to non-EiC schools. School-level absences in treatment and control schools are also compared. The results show ...
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作者：Schnabel, Isabel; Shin, Hyun Song
作者单位：Max Planck Society; University of London; London School Economics & Political Science
摘要：The financial crisis that swept across northern Europe in 1763 bears a strong resemblance to more recent episodes of financial distress. The combination of the specific contractual arrangements at the time, interlocking credit relationships, and the high leverage of market participants triggered distress sales of assets, leading to a severe liquidity crisis. Hence, the crisis is an early instance of contagion on the asset side of the balance sheet. We highlight the salient features of the 1763...
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作者：Stewart, Mark B.
作者单位：University of Warwick
摘要：This paper uses longitudinal data from three contrasting data sets (matched Labor Force Surveys, the British Household Panel Survey, and matched New Earnings Surveys) to estimate the impact of the introduction of the U.K. minimum wage (in April 1999) on the probability of subsequent employment among those whose wages would have needed to be raised to comply with the minimum. A difference-in-differences estimator is used, based on position in the wage distribution. No significant adverse employ...
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作者：Allen, Franklin; Gale, Douglas
作者单位：University of Pennsylvania; New York University
摘要：We define a financial system to be fragile if small shocks have disproportionately large effects. In a model of financial intermediation, we show that small shocks to the demand for liquidity cause either high asset-price volatility or bank defaults or both. Furthermore, as the liquidity shocks become vanishingly small, the asset-price volatility is bounded away from zero. In the limit economy, with no shocks, there are many equilibria. However, if banks face idiosyncratic liquidity shocks, th...
