This paper highlights the importance of product differentiation and endogenous Ramp;D in determining the optimal Ramp;D policy, in a model where investment in cost reducing Ramp;D is committed before firms compete in a differentiated-goods third-country export market. Ramp;D is always taxed in...

This paper analyzes empirically what explains the low profitability of Chinese banks for the period 1997-2004. We find that better capitalized banks tend to be more profitable. The same is true for banks with a relatively larger share of deposits and for more X-efficient banks. In addition, a...

This paper builds upon the existing empirical literature on the factors behind financial stability, focusing on the role of monetary policy design. In particular, it analyzes a sample of 79 countries in the period 1970 to 1999 to evaluate the effect of the choice of the central bank objectives...