This dissertation consists of three essays in financial intermediation. The first essay develops a theory of deposits as a safer means of payment (bank notes or checks) in competing with money (cash). It turns out that banks can lend out the money from deposits for a charge, and this supply of...

parameters optimal; for other parameters, strictly positive rates (inflation above the Friedman Rule) are optimal.

Density functional theory calculations are performed to provide a molecular-level understanding of the mechanism of mercury adsorption on sulfuric acid-impregnated carbonaceous surface. The carbonaceous surface is modeled by a nine-fused benzene ring in which its edge carbon atoms on the upper...

We study an infinite-horizon Lucas tree model where a manager is hired to tend to the trees and is compensated with a fraction of the treesʼ output. The manager trades shares with investors and makes an effort that determines the distribution of the output. When the manager is less (more)...

The electronic and optical properties of Mn-doped 3C-SiC films are investigated by the first-principles calculation. The structure of Mn-doped 3C-SiC is modeled by substituting Mn atom for C or Si atom in 3C-SiC lattice. The results suggest that Mn-C and Mn-Si bonds can exist in the Mn-doped...

Private information about prospective borrowers produced by a bank can affect rival lenders due to a "winner%u2019s curse" effect. Strategic interaction between banks with respect to the intensity of costly information production results in endogenous credit cycles, periodic "credit crunches."...

We develop a new theory of money and banking based on the old story in which goldsmiths start accepting deposits for safe keeping, then their liabilities begin circulating as media of exchange, then they begin making loans. We first discuss the history. We then present a model where agents can...

We analyze the interaction between managerial decisions and firm value/asset prices by embedding the standard agency model of the firm into an otherwise standard asset pricing model. When the manager-agent's compensation depends on the firm's stock price performance, stock prices are set to...