We use Bayesian dynamic factor models to disentangle the global and idiosyncratic country-specific factors of the stock market prices and other macroeconomic variables from a large group of countries. We find that the global factors account for significant portions of an individual country's...

It is shown that the government, in privatizing state owned enterprises, can use partial privatization as a screening mechanism to elicit private information from the manager about the firm's value. Although some new owners do not have maximum incentives, this screening contract allows the...