In recent years market discipline attracted interest as a mechanism to augment or to partially replace government oversight (discipline) of the financial sector, specifically depository institutions. Despite the abundance of research, mostly empirical studies, in the area no formal model has...

In recent years market discipline attracted interest as a mechanism to augment or to partially replace government oversight (discipline) of the financial sector, specifically depository institutions. Despite the abundance of research, mostly empirical studies, in the area no formal model has...

We demonstrate that the process of discovering efficient values in equity trading introduces noise in prices. Noise plays an important role in theoretical microstructure literature, and empirical studies have documented high, U-shaped intra-day volatility that is a manifestation of noise. While...

Economic efficiency is probably the most significant objective of both privatisation and economic liberalisation. This case study of Israel's bank privatisation programme focuses on the political economy of the process. It deals with an unusual coalition of political players consisting of...

Economic efficiency is probably the most significant objective of both privatisation and economic liberalisation. This case study of Israel's bank privatisation programme focuses on the political economy of the process. It deals with an unusual coalition of political players consisting of...

After briefly reviewing the major changes in the financial structure as well as the focal events that characterized the 2007-2008 global financial crisis, this paper considers the evidence for the crucial role played by misaligned incentives. Presumably because compensation was predicated on...