I develop a model where governments might prefer to have an undercapitalized domestic financial sector during crises. Weak banks optimally tilt their sovereign bond portfolio towards domestic securities that are positively correlated with banks' other sources of revenues. Governments anticipate...

In statistics, samples are drawn from a population in a datagenerating process (DGP). Standard errors measure the uncertainty in sample estimates of population parameters. In science, evidence is generated to test hypotheses in an evidencegenerating process (EGP). We claim that EGP variation...

African countries have over the years experienced persistent current account deficits. The role of asymmetries in explaining the response of trade balance to exchange rate movement has not received adequate attention as linear models dominate extant empirical literature. In this paper, we...

The convex time budget (CTB) method is a widely used experimental method for eliciting an individual's time preference. Researchers adopting the CTB experiment usually assume quasi-hyperbolic discounting utility as a behavioural model and estimate the parameters of the utility function. However,...

The high proportion of motorized vehicles is leading to significant functional problems, especially in the centers of major cities. At the same time, dependence on fossil fuels is no longer just a climate problem, but also a problem of world peace. Simultaneously, new forms of mobility are...

[Synopsis and motivation] In recent decades, most OECD countries have seen a significant decline in the labour share, as well as an increase in inequality. The decline in the labour share and the rise in inequality poses several problems for such countries, whether related to distributive...

In many markets, firms make their products complex through add-on features, thus making them difficult to evaluate and compare. Does this product obfuscation lure buyers into buying overpriced products, and if so, why does competition not eliminate this practice? More generally, under which...

Der Preis der Schwedischen Reichsbank für Wirtschaftswissenschaften im Gedenken an Alfred Nobel geht an Ben Bernanke, Douglas Diamond und Philip Dybvig. Nach Ansicht der Königlich Schwedischen Akademie der Wissenschaften haben die Preisträger "unser Verständnis der Rolle der Banken in der...

"Consumption Corridors: Living a Good Life within Sustainable Limits explores how to enhance peoples' chances to live a good life in a world of ecological and social limits. Rejecting familiar recitations of problems of ecological decline and planetary boundaries, this compact book instead...