A discussion of the use of municipal debt issues to fund publicly supported stadiums, focusing on the role of federal tax exemption as a hidden subsidy in reducing local funding costs and on the rationale for seeking public subsidies of private, local facilities.

An examination of the banking reform efforts under way in Mexico, emphasizing how incentive effects can drive up the cost of these efforts and ultimately boost the cost of resolving the nation's debt problem.

A presentation of some of the options for recapitalizing the Savings Association Insurance Fund, with particular emphasis on merging it into the FDIC's Bank Insurance Fund.

An outline of three possible options for capitalizing the Savings Association Insurance Fund, which is in danger of suffering a huge premium disadvantage compared to banks insured by the Bank Insurance Fund, and a recommendation that any solution should first consider the policy objectives for...

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.

Research has generally failed to find reliable connections between official exchange-market interventions and exchange rates that are consistent with either a monetary or a portfolio-balance theory of exchange-rate determination. Recently economists have suggested that intervention might...

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...