Traditionally, regulation of banks has focused on the riskentailed in bank loans. Loans are typically nontradedassets. In recent years, another component of bank assetshas become increasingly important: assets actively tradedin the financial markets.1 These assets form the “tradingbook” of a...

An organization will often use a specialized technical language that is un-derstood by its members but not by others. We develop a theory of optimalorganizational languages and identify a key trade-o¤ between facilitatinginternal communication and encouraging communication with other...

In this paper we analyze the effect of inequality in the distribution of endowments of privateinputs (like land, capital) on production efficiency through its effect on the voluntary provisionof collective inputs (like irrigation, public research) that are complementary in production withthose...