To address how technological progress in financial intermediation affects the economy, a costly-state verification framework is embedded into the standard growth model. The framework has two novel features. First, firms differ in the risk/return combinations that they offer. Second, the efficacy...

How does technological progress in financial intermediation affect the economy? To address this question a costly-state verification framework is embedded into a standard growth model. In particular, financial intermediaries can invest resources to monitor the returns earned by firms. The...

We study a dynamic principal-agent relationship in which the agent receives a stochastic outside opportunity/offer each period and he cannot commit to not leaving the ongoing relationship.Termination, while costly, allows the principal to go to an external market to hire a new agent. We treat...

How important is financial development for economic development? A costly state verification model of financial intermediation is presented to address this question. The model is calibrated to match facts about the U.S. economy, such as intermediation spreads and the firm-size distribution for...

We consider nonlinear waves driven by curvature in the presence of periodically distributed obstacles. When the obstacles are small, Matano et al. (2006) proved rigorously that the propagation speed of a wave mainly depends on the opening angle of the obstacles. In this paper we first explain...

This work studies the theoretical rules of feature selection in linear discriminant analysis (LDA), and a new feature selection method is proposed for sparse linear discriminant analysis. An l1 minimization method is used to select the important features from which the LDA will be constructed....

A solid-particle solar receiver was proposed to convert concentrated solar beams into heat for high-temperature thermal storage in a two-stage dish system. Spherical Xe-arc lamps were used to simulate a solar light source. The performances of this receiver under a Xe-arc lamp array system were...