We study the design of institutions as a framework for regulating innovative activity in the private sector given the informational constraints faced by the social planner. Innovation in the private sector by financial institutions and manufacturing firms imposes important positive and negative...

This perspective provides thoughts on the burgeoning interdisciplinary literature surrounding the COVID-19 pandemic and its impact on both individuals and firms with a particular focus on the heterogeneity in government responses. In particular, we discuss disparities in vaccine distribution,...

Using household surveys and bank penetration data at the district-level in 2006 and 2009, we explore the impact of Equity Bank — a leading private commercial bank focusing on microfinance on the access to banking in Kenya. Equity Bank pursues distinct branching and business strategies that...

This paper surveys the empirical and theoretical literature on the mechanisms of corporate governance. We focus on the internat mechanisms of corporate governance (e.g., arising from conflicts of interests between managers and equityholders, equityholders and creditors, and capital contributors...

This paper examines the incentive structure underlying the current features of bank regulation. We show that capital regulation has limited effectiveness, given the observed high leverage ratios of banks. We propose instead a more direct and effective mechanism of influencing incentives through...