Most models of institutional change (e.g.,Dacin, Goodstein, & Scott, 2002) rely on the presence of powerful agents intent on changing the institutions. Few institutional change studies concern situations where powerful agents are absent or do not pursue change. In this paper, we argue that...

This paper incorporates the cost of adjustment between observed and optimal leverage in explaining the variation in firm?s equity or bank-debt financing investments. Using a dynamic adjustment approach identifies the determinants to capital structure between different financial systems. In...

We discuss how the welfare ranking of fixed and flexible exchange rate regimes in a New Open Economy Macroeconomics model depends on the interplay between the degree of exchange rate pass-through and the elasticity of substitution between home and foreign goods. We identify combinations of these...