The unique capital structure of commercial banking - funding production with demandable debt that participates in the economy´s payments system - affects various aspects of banking. It shapes banks´ comparative advantage in providing financial products and services to informationally opaque...

This paper explores how to incorporate banks' capital structure and risk-taking into models of production. In doing so, the paper bridges the gulf between (1) the banking literature that studies moral hazard effects of bank regulation without considering the underlying microeconomics of...

Our research as well as that by other authors has found scale economies at all sizes of banks and the largest scale economies at the largest banks - that is, larger banks are able to provide products at lower average cost than smaller banks. While the earlier literature found that scale...

The unique capital structure of commercial banking - funding production with demandable debt that participates in the economy's payments system - affects various aspects of banking. It shapes commercial banks' comparative advantage in providing financial products and services to informationally...

This is a draft of the first half of an open access textbook on game theory. I hope to complete the entire book by the end of 2015. After teaching game theory (at both the undergraduate and graduate level) at the University of California, Davis for 25 years, I decided to organize all my teaching...

There are large differences in income per capita across countries. Growth accounting finds that a large part of the differences comes from the differences in total factor productivity (TFP). This paper explores whether barrier to entry is an important factor for the cross-country differences in...

Productivity, the efficiency by which firms convert inputs into output is central concept in growth related discussions. This research is focused on analyzing productivity on a sample of Macedonian firms. The goal is twofold - first, to construct productivity indicators by using firm-level data,...

Barriers to investment are often regarded as an important determinant of the variation in international income levels. Nevertheless, in the standard neoclassical growth model, these barriers have only have small effects on per capita incomes. We consider the effects of barriers to accumulation...

Recent theoretical research suggest that monetary shocks might play an important role in explaining movements in the real exchange rate in the short and medium run. Empirically, the contribution of transitory (monetary) disturbances in explaining the variance decomposition of real exchange rates...

The green credit policy plays a vital role in promoting enterprise upgrading. Using a thirteen year panel data of listed companies in China (2007 2019), this study uses the difference in differences (DID) method to examine the effects of the Green Credit Guidelines in 2012 (GCG2012) on the firm...