reform. But how do increased capital requirements affect business loans? While there is widespread belief that the real costs … of increased bank capital in terms of reduced loans could be substantial, there are good reasons to believe that the … between the capitalization of the banking sector and bank loans using panel cointegration models. We study the evolution of …

problem, we introduce a triple mechanism involving political information markets, reelection threshold contracts, and … democratic elections. An information market is used to predict the long-term performance of a policy, while threshold contracts …

rigid, non discretionary contracts. Delegation grants some flexibility in the choice of the action by the agent, but also … again implies that the higher the degree of imprecision aversion the less profitable flexible contracts versus rigid ones …

, the timing and causes of the fairs' decline, and the institutions for securing property rights and enforcing contracts at …

We examine the power of incentives in bureaucracies by studying contracts offered by a bureaucrat to her agent. The …-powered incentives remain even in an alternative centralized setting, where the funding authority contracts directly with the agent using …

show how the law of insurance contracts should allow insurers to incentivize policyholders to exert an adequate level of …

Implicit contracts can mitigate moral hazard in labor, credit and product markets. The enforcement mechanism underlying … appropriate borrowed funds and generate investment income without requiring further loans. We examine implicit contracting in a … contracting: it leads to a more frequent breakdown of credit relationships as well as to smaller loans …

We examine “Forward Guidance Contracts”, which make central bankers' utility contingent on the precision of interest …-rate forecasts for some time. Such Forward Guidance Contracts are a flexible commitment device and can improve economic performance … renewable Forward Guidance Contracts and characterize the contracts that the government wants to offer repeatedly. These …