This paper considers the efficiency of money creation by banks and the principles of the central bank issuance to improve over it. The ability to issue deposit liability as a means of payment enlarges banks lending capacities and subjects them to fiercer competition. In curcumstances where banks...

This paper considers two types of technological change in a unified model. Typ A is unskilled-biased, allowing workers to cheaply produce more. This hurts the least talented workers while possibly benefitting the most talented ones. Together, these technological changes may have contributed to...

This paper offers a new approach, based on risk sharing, to endogenize the leverage of financial intermediaries. It endogenizes debt as the optimal contract for external financing, thereby capturing two features of leverage: debt serves to boost the return on equity, and equity provides...

The economy consists of a principal, an agent and a physical capital. Both of the latter two are indispensable to create value. The agent uses the capital to do either the independent project or the one that coordinates the principal's need. The paper shows that the arrangement of the principal...

The literature starting from Diamond (1984), justifying Financial Intermediation (FI) from the viewpoint that it accommodates additionally monitoring service, mis-targets the existence problem of FI, since direct fiances could also accommodate monitoring by hiring a specialist-monitor. This...

China's electricity sector faces the challenge of managing cost increases, improving reliability, and reducing its environmental footprint even as operating conditions become more complex due to increasing renewable penetration, growing peak demand, and falling system load factors. Addressing...