This book provides an insightful view of major issues in the economics of corporate governance (CG) and mergers. It presents a systematic update on the developments in the two fields during the last decade, as well as highlighting the neglected topics in CG research, such as the role of boards,...

Identity creating or cultural goods are characterized by a positive consumption network externality and increased utility because of doing what the reference group expects. Different countries have different cultural goods. It is shown that moving from autarky to free trade a country may suffer...

At the Lisbon Summit 2000 the EU set herself the goal of transforming the European Union by 2010 into “the most competitive and dynamic knowledge based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion”. I take this statement as...

It is assumed that firms have different technologies, and that an environment protection agency (EPA) knows which technologies exist but not which are used by which firms. Only firm outputs and total emissions, but not individual firm emissions are observable. Abatement technologies are known to...

We attempt to survey the most important implications of informational asymmetries in credit markets. First, we review the various explanations of equilibrium credit rationing, then we discuss their robustness if collateral and loan size are used as signals of credit worthiness. Then we show the...