We study the effects of a price transparency shock in the Brazilian OTC equity lending market. Previously, a publicly available stock-specific loan fee benchmark was the average fee of the past 15 trading days. On March 1, 2011, this interval was reduced to 3 days, significantly improving...

In the last couple of decades, production processes have been characterized by their fragmentation, which crosses the borders of countries more and more. This coincides with the common viewpoint that products and services are now made in global value chains and that ‘trade in value added’...

This paper proposes a model to study the main factors that influence the preferences of different population groups between presidential and parliamentary systems. Our theory suggests that the parliamentary regime leads to a type of fiscal decentralization in the form of more transfers to...

"Focus on the downside, and the upside will take care of itself" is a famous quote among professional investors. By considering an agent who follows this advice, we reproduce the first and second moments of stock returns, risk-free rate and consumption growth. The agent´s behavior towards risk...

We investigate the occurence of social learning among government officials in a context of decentralization of political responsibilities - the schooling decentralization reform of the state of São Paulo - and use it to analyze officials' motivations driving the adhesion to that program. We...

There is evidence in the literature that spending on a specific area could increase less than the amount transferred to that area, being the rest of the resources used to finance other public goods and services. This result became known as fungibility effect. The purpose of this paper is to...

Some recent theoretical papers show that margin requirements can affect asset prices. Such results are important, for example, to understand the unconventional polices implemented by the Fed during the financial crisis of 2007-2010. However, empirical evidence remains scarce. The present article...