monetization by a central bank? We argue here that both outcomes can arise in equilibrium. In the model economy, there are multiple … Monetization, the central bank is induced to print money to finance the region's obligations. The multiplicity of equilibria … reflects a commitment problem of the central bank. A key indicator of the selected equilibrium is the distribution of the …

Advertising and innovation are two engines for firms to escape competition through a better attraction power toward …, more competition pushes Neck and Neck firms to advertise more to attract a larger share of consumers on their products or …

competition on R&D according to the cost of the innovation. The effect of competition on R&D is an inverted U-shape. However, the … shape is flatter and competition policy is therefore less relevant for innovation when innovations are relatively costly …. Intuitively, if innovations are costly for a firm, competitive shocks have to be significant to alter its innovation decisions …

propagation from 2008 to 2012. We study the distribution of contagion outcomes after a common shock and an exogenous bank default … propagation of losses. An econometric analysis of the determinants of contagion shows that the position of a bank in the network …