Risk shifting and incomplete contracting lie at the heart of the agency relationship inherent in the procurement and financing of large-scale projects such as power plants, oil and gas pipelines, and liquefied natural gas facilities. An investigation of Ras Gas bonds provides empirical evidence...

Countries need suitable mechanisms for balancing the risks and benefits of financial openness, including mechanisms through which to provide insurance to citizens, through the marketplace or through redistributive policy, and thus to avert political pressure for capital controls. Capital...