The optimal provision of loan guarantees or deposit insurance is examined in the context of an overlapping generations model. It is demonstrated that even in the face of a market imperfection that precludes diversification of the private sector’s loan portfolio to eliminate risk, full...

"Examines the underlying mechanisms through which the law, judiciary, and legal profession influence the economy. Analyzes enforcement, contracts, and property rights--the concepts collectively defining rule of law--and examines their roles in the real estate and financial sectors. Extended...