This paper examines banks' provision of liquidity to depositors and provision of loans. The problem identified is that banks may not be able to provide new funds for borrowers who are short of cash, because either the return on investments is poor, or because depositors withdraw more funds than...

This paper develops a simple model of bank lending and liquidity shortages. Firms borrow from banks in the form of long term renegotiable bank loans. Banks themselves are financed through uninsured non-renegotiable deposit contracts. Bank liquidity plays a crucial role in the intermediation...

By combining hidden types and hidden action, this paper shows that the existence of credit rationing need not imply that lending exceeds the full-information level. In this plausible class of models, the appropriate policy is not to subsidise or tax lending but to make alternatives to...

<title>Abstract</title> Academic research on urban systems has recently come under criticism for its role in the promotion and justification of certain forms of state policy. This critical literature on research impact has identified increased client control of research agendas and processes. However, this...