Using bank level measures of competition and co-dependence, the authors show a robust positive relationship between bank competition and systemic stability. Whereas much of the extant literature has focused on the relationship between competition and the absolute level of risk of individual...

This paper justifies the evolution of the college admissions system in China from a mechanism design perspective. The sequential choice algorithm and the parallel choice algorithm used in the context of China's college admissions system are formulated as the well-studied Boston mechanism and the...

Market size has been predicted to play an influential role in a broad class of environments. We study performance of the Boston and the Deferred Acceptance (DA) mechanism in a laboratory where we increase the market size. Our results show that increasing the market size from 4 to 40 students per...

Deposit insurance is widely offered in a number of countries as part of a financial system safety net to promote stability. An unintended consequence of deposit insurance is the reduction in the incentive of depositors to monitor banks which lead to excessive risk-taking. We examine the relation...

Using a model of aid fungibility, the authors examine the relationship between foreign aid and public spending. Based on a panel of cross-country and time-series data, their results show that roughly 75 cents of every dollar given in net development assistance goes to current spending and 25...

Cover -- Contents -- Foreword -- Acknowledgments -- Introduction -- PART I: DIVERSIFICATION ATTEMPTS IN THE MIDDLE EAST AND NORTH AFRICA -- 1 Soaring of the Gulf Falcons: Diversification in the GCC Oil Exporters in Seven Propositions -- 2 The Riddle of Diversification -- PART II: EXPERIENCES OF...

China's growth potential has become a hotly debated topic as the economy has reached an income level susceptible to the 'middle-income trap' and financial vulnerabilities are mounting after years of rapid credit expansion. However, the existing literature has largely focused on macro level...

Deposit insurance is widely offered in a number of countries as part of a financial system safety net to promote stability. An unintended consequence of deposit insurance is the reduction in the incentive of depositors to monitor banks, which leads to excessive risk-taking. This paper examines...