This paper develops a framework for analyzing socially and privately optimal bank loan-monitoring decisions, with and without capital regulation. In contrast to the monitoring decision of a social planner who seeks to maximize the utility of aggregate consumption, banks choose to monitor only if...

The level of health attained by a nation's citizens will affect their economic behavior in many important respects. We focus on one of these - the effect of health on expected lifespan. When individuals expect to live for a longer period of time, they plan accordingly earlier in their lives....