Djankov et al. (2003a) propose and measure for 109 countries in the year 2000 an index of formalism of legal procedure for two simple disputes: eviction of a non-paying tenant and collection of a bounced check. For a sub-sample of 40 countries, we compute this index every year starting in 1950,...

This contribution deals with the conflict-of-laws principles governing Financial Instruments, Bonds & Loans, Cheques, Bills of Exchange and Guarantees. It starts with comparative and historic aspects and then goes on to deal with issues regarding the determination of the applicable law. The...

Students of U.S. banking history typically hold that the check collection industry was excessively costly prior to 1915 and that the Fed's subsequent entry into check clearing improved efficiency. The authors propose an alternative view based on the economics of network communications...

Check collection has a puzzling feature. The collecting bank earns one day's additional interest by presenting a check to the paying bank one day sooner. The puzzle is that it is difficult to identify a commensurate social benefit associated with presenting a check one day earlier. Collecting...

Alternative payment instruments are studied in an economy with private information, delayed communication, and limited commitment. Attention is restricted to checks and bank drafts, which differ in resource cost and communication characteristics. Checks are less costly but settlement delays...

The payment system is a communications industry in which Federal Reserve Banks, in their check collection activities, provide communication services. The history of government intervention in other communications industries offers lessons for the Fed in its efforts at payment system innovation....

Special Purpose Acquisition Companies (SPACs), a particular type of blank check firms, have risen dramatically since 2003 and account for one third of the U.S. IPO market in 2008. Compared to other public acquirers, SPACs tend to make focused acquisitions, target mostly private companies, are...