The assumption of perfect capital markets is least likely to be satisfied for the class of firms which devote resources towards the development of innovative products or processes. Existing tests of the impact of capital market imperfections on innovative firms cannot distinguish between two...

This pamphlet excerpts a chapter on macroeconomic policy from the Poverty Reduction Policy Source book, a guide prepared by the World Bank and IMF to assist countries in developing and strengthening their poverty reduction strategies. It probes the relationship between macroeconomic policy...

This paper studies the role of dynamic risk sharing in a world where agents have private information about their incomes, and in which their storage activities can be monitored at a cost. A principal offers long-term, full-commitment contracts to the agents, promising them consumption smoothing...

Competition investigations frequently consider whether a firm or collection of firms have incentives to raise prices. Some competition authorities propose that it may sometimes be appropriate to consider the incentive to increase a measure of value added rather than final prices per se. This...