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Journal Article
Opinion : No time for protectionist impulses
Journal Article
Opinion: The risk of short-term fiscal fixes
Journal Article
Book review : Man and machine
Working Paper
The adverse selection approach to financial intermediation: some characteristics of the equilibrium financial structure
This paper examines an adverse selection economy in which efficient resource allocation is supported by intermediary contracts (coalitions). Agents differ along an ex ante publicly observable dimension, so that the equilibrium arrangement yields a diverse set of financial arrangements among borrowers, lenders and intermediaries. Loans made by intermediaries would appear to be mispriced relative to a naive benchmark that ignores the (unobservable) adverse selection aspects of the environment. The model also yields an equilibrium mix of intermediated and direct finance which is broadly ...
Journal Article
Opinion: Watching Labor Force Participation
Journal Article
Opinion: Immigration and the Economy
Journal Article
Opinion: Fed Communications in Unusual Times
Working Paper
Incentives, communication, and payment instruments
Alternative payment instruments are studied in an economy with private information, delayed communication, and limited commitment. Attention is restricted to checks and bank drafts, which differ in resource cost and communication characteristics. Checks are less costly but settlement delays create a limited commitment constraint. We find that drafts dominate at low wealths and checks at higher wealths. Applications to 19th century and modern payment systems are discussed.
Journal Article
Selling Federal Reserve payment services: one price fits all?