This study summarizes the findings of a non-lending analytical activity carried out by the World Bank in 2004 and 2005. The work was driven by concern over the quality of the urban environment, and undertaken in a context of uncertainty on the suitability and effectiveness of Bank investment in...

We study portfolio choice with multiple stocks and capital gain taxation assuming that capital losses can only offset current or future realized capital gains. We show through backtesting, using empirical distributions, that optimal equity holdings over an extended period are significantly lower...

We consider the portfolio delegation problem in a world with potentially incomplete contingent claim markets. A principal hires an agent to manage a portfolio. When the agent has limited liability (that is, there is a lower bound on the compensation contract), she may have an incentive to take...