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What were the distributional consequences of the recent demonetization in India? Can the implementation of demonetization be improved to mitigate its distributional impact? This paper answers these questions using a dynamic contracting model featuring costly state verification and...
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Despite the key role an increase in production efficiency plays in improving the competitiveness of the economy, the … efficiency of production is not reflected in the objectives of monetary policy. The paper investigates the impact of the interest … rate on firms’ efficiency and argues that it is not the interest rate itself that matters, but the gap between the interest …
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This paper proposes a theoretical model that incorporates corporate governance into the basic CAPM, where corporate governance affects the disutility of managerial effort and the possibility of managers to divert company resources. It shows that corporate governance affects firms’ stock...
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