This article demonstrates that exaggerated risk aversion may comprise a rational form of strategic behaviour in the face of asymmetric information. Unlike some other forms of strategic behaviour analysed previously, this behaviour confers a benefit in the form of higher ex post consumption (not...

Practitioners, regulators and researchers have long recognized important conceptual distinctions among screening, monitoring and collection of loans. However, virtually no empirical studies have explored whether these tools of risk management are employed as net substitutes or as net...

Using several samples of forward exchange rate forecasts for the British pound vs. the US dollar, this article explores the post-sample predictive performance of adjusting the forecasts for recent empirical bias. Numerical accuracy is assessed via both parametric and nonparametric tests, and...

An improved empirical specification of credit card conduct agrees with several prior studies in rejecting perfectly competitive equilibrium, indicates structural disequilibrium in the industry and is consistent with monopolistic competition. Measures of liquidity management costs, omitted from...