The Northern Rock bail out has raised concerns about the ability of current supervisory systems to deal with banking crisis. This paper provides a formal model of a lender of last resort. I derive the optimal policy, extract policy implications and thereby suggest reforms to the current...

This paper examines the wage premium to computer use in a developing country:Ecuador. We use different approaches to establish whether the premium is causal.Controlling for a large set of observables we find a wage difference between users andnon-users of around 27%. Using first differences, the...