In a model with fiscal policy, Hughes Hallett et al. [Hughes Hallett, A., Libich, J., Stehlík, P., 2009. Rogoff revisited: the conservative central banker proposition under active fiscal policies. Economics Letters 104, 140–143] challenge the relevance of the conservative central banker...

This paper examines asymmetric information in the life insurance market using data that link life insurance holdings with death records for a representative sample of purchasers. This analysis finds no compelling evidence for adverse selection in a broad age cohort.

This paper explains how and why the Matching Auctions work better with Imperfect Financial Markets. We show that an efficient outsider can obtain a “good” project even if the insider has informational advantage.

In this note we study a model of vertical hierarchies where the allocation of residual claimancy is endogenous and is determined jointly with production and contractual decisions. We show that the (equilibrium) allocation of residual claimancy may be affected by production externalities across...

This paper shows that positive correlation between project outcomes may improve the efficiency of microfinance group lending contracts.

In a market where insurers are not allowed to risk rate, we find evidence of advantageous selection using observed health expenditure risk. Selection is driven by income and optimism about the future. This may explain insurers’ profitability, despite community rating.

We consider an adverse selection model in which the agent can gather private information before the principal offers the contract. In scenario I, information gathering is a hidden action, while in scenario II, it is observable. We study how the two scenarios differ. Specifically, the principal...