We develop a model of rational bubbles based on the assumptions of unknown market liquidity and limited liability of traders. In a bubble, the price of an asset rises dynamically above its steady-state value, justified by rational expectations about future price developments. The larger the...

Violations of Tinbergen's Rule and strategic interaction undermine monetary and financial policies significantly in a New Keynesian model with the Bernanke-Gertler accelerator. Welfare costs of risk shocks are large because of efficiency losses and income effects of costly monitoring, but they...

This dissertation addresses issues in corporate finance. Part I examines the litigationenvironment of a firm and its impact on financial policy. Chapter 1 discusses prior research,including theory and empirical results, related to firm performance, financial policy, andlitigation. It provides...

Theory and evidence on government taxation policy. Topics include tax incidence; optimal tax theory; the effect of taxation on labor supply and savings; corrective taxes for externalities; taxation and corporate behavior; and tax expenditure policy. From the course home page: Course Description...

This paper highlights the inequality in financial penetration and usage in India, based on macro level data, and shows how certain regions, such as the Northeastern or Eastern of the country need special attention by the policy makers. Credit schemes need to be formalized so that the weaker...