We consider the infinite-horizon multiple retailer joint replenishment problem with first order interaction. In this model, the joint setup cost incurred by a group of retailers placing an order simultaneously consists of a group-independent major setup cost and retailer-specific minor setup...

How much deposits and equity a bank has influences how a banks' lending responds to monetary policy. While the responsiveness for the bank lending channel has been well established, this is not the case for the risk-taking channel (RTC). We show in a value-at-risk RTC model that the lending for...

In this paper, we study how the interbank market could impact deposit competition and bank profits. We first document two stylized facts: the net interbank funding ratio is negatively correlated with net interest margin (NIM), as well as with the cost-to-income ratio (CIR). To rationalize these...

This paper examines conditions under which the agency problem in PPP (expropriation of the private partner by the state) could be rectified. We propose that the issue lies not in a 'complete contract' (a more protective ex ante contract) in mitigating the agency problem in PPP, but rather the...

The TIP market consists of three players: the trafficker, the traffickee and the government. It is often fraught with agency problems of asymmetric information, moral hazard, divergent beliefs and incomplete contract between the traffickers and traffickee where the former often use psychological...

Why is Trafficking in Persons (TIP) more widespread in some countries than others? Different theories associate this with levels of economic development, political institutions, government policies and particular historical and cultural traditions. This article analyzes human trafficking rates...

State-contingent control rights allow creditors to intervene after borrowers' negative performance. Identifying the value of ex-post creditor intervention remains an empirical challenge due to the unknown counterfactual outcomes and the lack of randomly assigned treatment. In this paper, we...

Using a new firm-level dataset with comprehensive information on Asian firms' FX liabilities, we show that Asia's nonfinancial corporate sector is vulnerable to a tightening of global financial conditions. Higher global interest rates and exchange rate depreciation increase the probability of...