Donors who try to impose policy conditionality on countries receiving their aid commonly face confflicting incentives between using aid to induce income-increasing reforms and using aid to assist low-income countries: this confflict can lead to a time-consistency problem. This paper o¤ers a...

One of the main elements of the current reform of electricity trading in the UK is the change from a uniform price auction in the wholesale market to discriminatory pricing. We analyse this change under two polar market structures (perfectly competitive and monopolistic supply), with demand...

This paper presents a principal-agent model of IMF conditional lending, in the aftermath of a capital-account liquidity crisis. We show that traditional ex-post conditionality can be effective in safeguarding the Funds resources, allowing for the provision of efficient emergency lending and...