An argument that recent growth in the number of banking offices (head offices plus their branches) does not necessarily mean that banking services have increased.

An assessment of how banks adjust to increased capital requirements, illustrated by a model of a bank's choice of optimal leverage.

An analysis of how central-bank exchange-market intervention can affect both the level of exchange rates and the risk premium in asset returns, showing how the risk premium is related to the conditional variances of intervention and other exogenous processes.

I perform an empirical analysis of Euler equations for the firm's choices of capital, labor, hours, and debt. Financial structure has real effects , since taxes favor debt. However, the cost of debt increases with the debt-to-collateral ratio, and capital is part of collateral. The data, for...

An assessment of banks' changing involvement in highly leveraged transactions through the use of regulatory data collected in 1991 and 1992, which reveal that overall bank exposure to highly leveraged activities currently poses little threat to bank capital or to the bank insurance fund.

An analysis of the relationship between stock-market gyrations and business fixed investment, using the q theory (the ratio of the market value of financial liabilities to the replacement value of physical assets).

Like the bank notes that circulated in this country from 1863 to 1913, stored-value cards substitute the liabilities of private banks for government and central-bank liabilities. This shift may have important implications for the federal budget, the money supply, and monetary policy.

An investigation of one of the reasons why electronic payments have not yet supplanted cash and checks in retail transactions: Consumers willingness to use an innovation depends on the number of merchants who have already adopted it, and merchants willingness to invest in the innovation depends...

An analysis of the often-understated role of capital flows from the United States to Mexico following passage of the North American Free Trade Agreement in late 1993, examining their implications for the Mexican economy.