bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is …

We develop a theory of resource management where the degree to which countries escape the tragedy of the commons is …

In many countries, bankruptcy is associated with low recovery by creditors. We develop a model of corporate credit … markets in such an environment. Corporate credit is provided by either a bond market or risk-averse banks. Restructuring of …

environment is conducive to countries experiencing credit bubbles that have large macroeconomic effects at home and are quickly … propagated abroad. In previous work, we built on the theory of rational bubbles to develop a framework to think about the origins … and domestic effects of these credit bubbles. This paper extends that framework to two-country setting and studies the …

currency and reduce net exports. Emerging market policy makers however believe that inflows lead to credit booms and rising … output, and the evidence appears to go their way. To reconcile theory and reality, we extend the set of assets included in …