Why is it difficult to restructure sovereign debt in a timely manner? In this paper we present a theory of the sovereign debt restructuring process in which delay arises as individual creditors hold-up a set- tlement in order to extract greater payments from the sovereign. We then use the theory...

We develop a model to assist policy-makers in their choice between private and public ownership for a broad range of activities, based on managers' ability to divert resources through perks or pet projects. Qualitative information is always required to demonstrate that public ownership is...

We construct a model in which an investment opportunity arises for a first mover before it knows the identity of a second mover and in which joint location results in a negative externality. Contracts are inherently incomplete since the first mover cannot bargain over its ex ante investment...

Recently, U.S. environmental law has shown a tendency toward increased lender liability. A model of a potentially judgment-proof owner of a firm, a lender, and a potential victim is developed in which this policy can increase accident frequency and reduce efficiency. Full, partial, and zero...

This book brings together a number of contributions in growth theory and macroeconomic dynamics that reflect recent developments and the ongoing debate over the relative merits of neo-classical and endogenous growth models. It focuses on three important aspects that have been receiving...