Extreme adverse selection arises when private information has unboundedsupport, and market breakdown occurs when no trade is the only equilibriumoutcome. We study extreme adverse selection via the limit behavior of afinancial market as the support of private information converges to an...

This paper addresses the large degree of frictional wage dispersion in US data. The standard job matching model without on-the-job search cannot replicate this pattern. With on-the-job search, however, unemployed job searchers are more will- ing to accept low wage offers since they can continue...

This paper investigates the impact of individual bank fundamental variables onstock market returns using data from a panel of 235 European banks from 1991to 2005. The sample period marks a significant transition in the European bankingsector, characterized by higher competition, lower profit...

Owing to changes in the business environment, there has been a tremendous adoption of innovativeworkplace organisation (WO) and human resource (HR) practices during the last fewdecades. Assuming a holistic perspective on human resource management (HRM), the presentstudy establishes the...

We test the menu cost model of Ball and Mankiw (1994, 1995), which impliesthat the impact of price dispersion on inflation should differ between inflation anddeflation episodes, using data for Japan and Hong Kong. We use a random crosssectionsample split when calculating the moments of the...

This paper provides a discussion about some recent issues related to the transfer ofcredit risk (CRT) from the perspective of global liquidity. The CRT market is enormouslygrowing and exhibits major structural shifts in terms of buyers and sellers ofprotection. I try to address these issues from...

Welfare gains from increasing product variety are an important  source of the gains from international trade. Recent empirical studies have largely focused on measuring the gains from an increased variety of imports. Trade theory, however,  suggests that international trade heavily affects the...