We show that the joint liability lending contracts derived in <link rid="b4">Ghatak (2000)</link> violate an "ex post" incentive-compatibility constraint which says that the amount of joint liability cannot exceed the amount of individual liability. We derive and characterise optimal separating joint liability...

This note argues that the joint liability contracting equilibria worked out in Ghatak(2000) have a serious drawback in that, even though incentive compatible ex ante, they violate ex post rationality. For such contracts to be feasible, banks should be able to extract more under failure than...

Productivity growth has long been associated with, among others, contestability of markets which, in turn, is dependent on the ease with which potential competitors to the incumbent firms can enter the product market. There is a growing consensus that in emerging markets regulatory and...

Government’s land acquisition has come increasingly under fire from both the courts and the people whose lands are being acquired. This article argues that the way land is being acquired in India is contrary to the principles that govern a market-based society. It shows the close...

We offer new conceptual insights into the understanding of occupational choice in uncertain rural environments, with a focus on its ex ante &lpar;before a shock&rpar; and ex post &lpar;after a shock&rpar; consequences for farmers belonging to different portions of the asset distribution. We model theoretically the...

The contributors – top international scholars from finance, law and business – explore the role of governance, both internal and external, in explaining risk-taking and other aspects of the behavior of financial institutions. Additionally, they discuss market and policy features...

Purpose – Consider a government benefit that is earmarked for a group of people “deserving” the benefit. Corruption happens when undeserving candidates obtain the benefit with the help of corrupt officials. Often, such corrupt activities are mediated by professional touts who act as...

This paper considers a dual economy in which the urban sector has open unemployment while the rural sector has surplus labor. The model is a n extension of the Harris-Todaro (1970) framework as developed by Kul B. Bhatia (1979), where full employment is said to exist when open u nemployment and...