Legislators are calling for a “systemic risk regulator”, in part to provide an early warning of financial conditions that threaten the real economy. To succeed, however, we need a forward-looking measure of systemic risk. Even more, we need a measure that varies with “pollution” from...

This book unifies deeply related topics in money and banking. By continually building on the assumption that economic actors are maximizers, it explains how monetary and financial services, as well as related governance mechanisms, influence economic performance. In this manner, Money, Financial...

Empirical studies of the external effects of R&D suggest that both geographic and technological distance attenuate inter-firm spillovers from innovative activity. The results presented here indicate that the tendency for R&D spillovers to localize economic activity is conditional on the...

We consider an environment in which participants make payments over a network and can invest in a technology that reduces the marginal cost of using the network. A network effect results in multiple equilibria; either all agents invest and usage of the network is high or no agents invest and...

Evidence is presented which suggest that an important measure of the apparent geographic localization of R&D spillovers may be an artifact of industrial agglomeration. A production function framework is used to examine the role of geographic and technological proximity for inter-firm spillovers...

Being careful about the potential for endogeneity bias, I find robust evidence that "institutions for private property" share a more fundamental relationship with health expenditures than does national income. This research should interest a wide audience. First, health scholars may be...

Professors Calomiris and Haber paint a bleak picture – that is, historically populist political bargains over U.S. banking policy have become so entrenched that the most severe systemic crisis in memory, and accompanying Great Recession, may do little to spark effective policy reforms. Even if...

We examine incentives for network-specific investment and the implications for network governance. We model an environment in which participants that make payments over a network can invest in a technology that reduces the marginal cost of using the network. A network effect results in multiple...