In the U.K., between 1955 and 1970, dual class shares quickly lost popularity without any regulatory intervention. The decline in the use of dual class shares was positively correlated with the relative valuations of one-share-one-vote and dual class firms, which in turn were related to media...

We show that after the revelation of corporate fraud in a state, household stock market participation in that state decreases. Households decrease their holdings in fraudulent as well as non-fraudulent firms, even if they did not hold stocks in fraudulent firms. Within a state, households with...

This paper offers an explanation for the coexistence of convergence across countries and the lack thereof at the regional level in the European Union. The model shows that, even if it accelerates growth and brings convergence across countries, the intensification of international knowledge...

Formal finance involves costly information acquisition about distant entrepreneurs, while relationship-based finance allows financiers to fund a narrow circle of close entrepreneurs without engaging in costly information acquisition. We show that in developing economies with low capital...

We provide evidence that open-end structures undermine asset managers' incentives to attack long-term mispricing. First, we compare open-end funds with closed-end funds. Closed-end funds purchase more underpriced stocks than open-end funds, especially if the stocks involve high arbitrage risk....

Books reviewed: A. Stewart Fotheringham and Michael Wegener (eds.), Spatial Models and GIS: New Potential and New Models Aura Reggiani (ed.), Spatial Economic Science: New Frontiers in Theory and Methodology Jean-Claude Thill (ed.), Geographic Information Systems in Transportation Research...

Why are skilled workers more mobile than average? What determines positive migration flows toward relatively poorer regions or states of a country? How can one explain the sharp decrease in the mobility rate observed within European countries notwithstanding the persistent regional disparities?...

In this paper, I identify some stylized facts characterizing regional evolution in Europe during the eighties. In particular, I provide evidence of the existence of convergence clubs based on regional specialization. Afterward, I give an explanation of this empirical evidence based on the...

This paper shows that banks exhibit a weaker (stronger) home bias in the extension of new loans when funding conditions in their home country improve (deteriorate). We refer to these changes in home bias as flight home and flight abroad effects, respectively, and show that they are unrelated to...