This paper presents a simple model of risk-averse banks that face uncer-tainty over funding conditions in the money market. It shows when increasedfunding uncertainty causes interest rates on loans and deposits to rise, whilebank lending and bank pro…tability fall. It also …nds that funding...

Carbon leakage is a major concern for policymakers involved with environmentalinitiatives such as the European Unions emissions trading scheme and similar cap-and-trade proposals in the United States, Australia, and elsewhere. This paperprovides a framework for understanding the drivers...

Productivity, or the amount of output produced by a given number of inputs,can be measured in a number of ways;1 the focus of Governmentpolicy, and much of the theoretical and empirical literature, is on labourproductivity, which provides the theme of the discussion in this review.A central...

Market share objectives are prominent in many industries, especially where man-agers pay much attention to league table rankings. This paper explores the strategicrationale for giving managers incentives based on market share in an oligopoly com-peting in strategic substitutes. Moreover, the...

In 2000, the Lisbon Agenda set out an ambitious plan to make the EuropeanUnion “the most dynamic and competitive knowledge-based economy inthe world”. The Agenda suggested a need for action on three broad fronts:the first explicitly macroeconomic; the second explicitly microeconomic;the third...

Probably the most enduring result in the theory of optimum income taxation is that,for a sufficiently thin upper tail to the skill distribution, the marginal tax rate shouldfall rather than rise with income. This paper shows that this result is highly sensitiveto a very strong informational...

The growth process for a technological leader is different from that of a follower.While followers can grow through imitation and capital deepening, a leader must undertakeoriginal research. This suggests that as the gap between the leader and the follower narrows, thefollower must undertake...