This paper provides a political-economy explanation for the separation of monetary policy from banking supervision by examining whether this institutional arrangement serves the platforms of the Conservative or of the Liberal parties, which are assumed to favor a stable price level and...

In an effort to understand the determinants of economic growth in an emerging economy, we analyze the effects of institutional reforms, wars and political events on the risk level of the Israeli stock market between 1945 and 1960. We find that the anticipation of wars did not have any effect but...

The economic theory of defense has traditionally described public safety as achieved through investments that deter adversaries. Deterrence is, however, ineffective and pre-emptive defense is required when a population of intended victims confronts supreme-value suicide terror. A moral dilemma...

The economic theory of defense has traditionally described public safety as achieved through investments that deter adversaries. Deterrence is however ineffective, and preemptive defense is required, when a population of intended victims confronts supreme-value suicide terror. A moral dilemma...

If banks face asymmetric information about loan quality, endogenous borrowing constraints which restrict the size of new firms may emerge in equilibrium. High quality firms reduce financing costs by starting off small and increasing their size over time.

This paper suggests a new approach to analyzing the causes of franchise extension. Based on a new dataset, it provides a detailed econometric study of the Great Reform Act of 1832 in the United Kingdom. The analysis yields four main results. First, modernization theory receives limited support....