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...

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 China urban residents have traditionally been protected against labour marketcompetition from rural-urban migrants. Over the period of urban economic reform, rural-urbanmigration was allowed to increase in order to fill the employment gap as growth of labourdemand outstripped that of the...

Social capital is thought to play an economic role in the labour market. It may beparticularly pertinent in one that is in transition from an administered to a market-orientedsystem. One factor that may determine success in the underdeveloped Chinese labourmarket is thus guanxi, the Chinese...

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...