We develop a novel argument why better public information can help countries to insure against idiosyncratic risk. Representative agents of developing and industrial countries receive public and private signals on their future income realization and engage in risk-sharing contracts with limited...

We study the existence of a profitable unemployment insurance market in a dynamic economy with adverse selection rooting in information on future job losses. The new feature of the model is that the insurer and workers interact repeatedly. Repeated interactions make it possible to threaten...

We provide new evidence on the bank lending channel of monetary policy using bank-level data of 440 banks from eleven CEE transition economies between 1998 and 2012. Our findings are: i) banks adjust their loans to changes in host country's monetary policy, ii) foreign-owned banks are less...

We develop a novel argument why better public information can help countries to insure against idiosyncratic risk. Representative agents of developing and industrial countries receive public and private signals on their future income realization and engage in risk-sharing contracts with limited...

We provide new evidence on the effects of monetary policy on loans using bank-level data on 429 banks in CEE economies between 1998 and 2012. Only domestic banks adjust their loans to changes in monetary policy. This is driven by the supply side as deposits in foreign banks do not react to...

We study the existence of a profitable unemployment insurance market in a dynamic economy with adverse selection rooting in information on future job losses. The new feature of the model is that the insurer and workers interact repeatedly. Repeated interactions make it possible to threaten...

Do more people choose to become self-employed when search frictions decline? The origin story of the gig economy suggests that improvements in communication technologies increase the self-employment rate, while cross-country evidence suggests the opposite. We reconcile conventional wisdom with...