The economy consists of a principal, an agent and a physical capital. Both of the latter two are indispensable to create value. The agent uses the capital to do either the independent project or the one that coordinates the principal's need. The paper shows that the arrangement of the principal...

The literature starting from Diamond (1984), justifying Financial Intermediation (FI) from the viewpoint that it accommodates additionally monitoring service, mis-targets the existence problem of FI, since direct fiances could also accommodate monitoring by hiring a specialist-monitor. This...

This paper considers two types of technological change in a unified model. Typ A is unskilled-biased, allowing workers to cheaply produce more. This hurts the least talented workers while possibly benefitting the most talented ones. Together, these technological changes may have contributed to...

This paper considers the efficiency of money creation by banks and the principles of the central bank issuance to improve over it. The ability to issue deposit liability as a means of payment enlarges banks lending capacities and subjects them to fiercer competition. In curcumstances where banks...

This paper offers a new approach, based on risk sharing, to endogenize the leverage of financial intermediaries. It endogenizes debt as the optimal contract for external financing, thereby capturing two features of leverage: debt serves to boost the return on equity, and equity provides...

This paper studies the impact of foreign direct investment on domestic firms' innovation in China. It provides causal evidence by exploiting China's foreign direct investment deregulation in 2002 and employs a difference-in-difference estimation strategy. Using a matched firm-patent data set...

This research focused on the feasibility and stability of applying the forward and reverse combustion approach to the in situ gasification of lignite and bituminous coal with oxygen or oxygen–steam mixtures as gasification agents, especially reverse combustion gasification. A high-quality...