Developing countries are concerned that multilateral tariff reductions will harm their agricultural sectors because of preference erosion. The findings in this report suggest that although this may indeed be a problem for some countries in some sectors, factors other than preferential schemes...

In moral hazard models, bank shareholders have incentives to transfer wealth from the deposit insurer - that is, maximize put option value - by pursuing riskier strategies. For safe banks with large charter value, however, the risk-taking incentive is outweighed by the possibility of losing...