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bank’s cash holdings and can signal the bank’s type through its dividend policy. Banks that will be adversely affected by … unaffected banks can credibly signal via a more aggressive payout strategy. Dividend payout restrictions have the potential to … higher risk of default but mitigates the distortion of the good type's policy. We identify a number of scenarios where this …
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According to a widely held belief, all who are able to work, should workʺ. We consider this statement within a framework of non-linear taxation. The crucial difference between our model and the standard model is that the government can distinguish between productive persons and the disabled. A...
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