Abstract We examine bank lending decisions in an economy with spillover effects in the creation of new investment opportunities and asymmetric information in credit markets. We examine price-setting equilibria with horizontally differentiated banks. If bank lending takes place under a weak...

Conventional wisdom notwithstanding, the recent spatial redistribution of the urban poor does not necessarily bode well for the future. During the 1990s, the share of metropolitan population living in census tracts with high percentages (more than 40%) of poverty indeed fell significantly, but...

Theory is divided over the effects of corruption on economic growth. However, the growing consensus based on the empirical literature is that corruption is associated with negative growth outcomes. This relationship is not necessarily linear, and causality between corruption and economic growth...

This paper studies the robust estimation and inference of threshold models with integrated regressors. We derive the asymptotic distribution of the profiled least squares (LS) estimator under the diminishing threshold effect assumption that the size of the threshold effect converges to zero....