Political contributions appear to be subject to an obvious public goods problem. Free riding might be expected to lead to polarization of contributions. We show that it is not true in general. In fact, in the most obvious model, with arbitrary number of candidates, we get a median contributor...

Our study complements existing studies of the degree of capital mobility based on an examination of explicit capital controls (e.g. Miniane 2004), the quantity of capital flows (Obstfeld & Taylor 2004), the relationship between investment and savings (e.g. Feldstein & Horioka 1980), cross...

We put forward a theory of the optimal capital structure of the firm based on Jensen's (1986) hypothesis that a firm's choice of capital structure is determined by a trade-off between agency costs and monitoring costs. We model this tradeoff dynamically. We assume that early on in the production...