Horse racing is an important industry throughout much of the world, and gambling has been increasingly relied on to provide financial support for beleaguered state governments. Technology has changed the way track patrons bet, with the vast and increasing majority of total bets being made away...

The total volume of wagering at a racetrack worldwide is important because it affects both racetrack and state (or provincial) revenues. State and provincial governments worldwide have subsidized racing in different ways, chiefly by means of the sire stakes, in which the government supports the...

The mutuel handle, or the total volume of wagering at a racetrack, has important implications for both racetrack and state revenues. This paper studies the factors that determine the dollar volume of wagering. One factor we study is of particular interest because it is both large and new to the...

Many writers have been quick to blame the high rate of foreclosures on subprime mortgages on what they call greedy, predatory lenders who exploited poor, unsophisticated and uneducated borrowers. The problem with this interpretation is that it cannot explain the behavior of foreclosure rates on...

Many writers have been quick to blame the high rate of foreclosures on subprime mortgages on what they call greedy, predatory lenders who exploited poor, unsophisticated and uneducated borrowers. The problem with this interpretation is that it cannot explain the behavior of foreclosure rates on...

The U.S. Supreme Court ruling in Kelo v. New London (2005) allows governments to take private property for transfer to new private owners to promote “economic development.” Our theoretical model shows that business creation can be encouraged, unaffected, or discouraged as the probability of...

Governments worldwide spend enormous sums subsidizing and even bailing out troubled firms. These firms are almost always large, mature companies in mature industries. In this book, Josh Lerner asks whether government should instead focus on emerging companies. Perhaps government would do better...

Angel investors go by many definitions. By all definitions, though, angel investors act as informal venture capitalists and collectively invest at least billions of dollars in thousands of entrepreneurial projects annually. Despite their importance to small businesses and entrepreneurs, angel...

What is a market friction? In the context of the capital asset pricing model, this article defines a financial market friction as anything that interferes with trade. This interference includes two dimensions. First, financial market frictions cause a market participant to deviate from holding...