This paper analyzes central bank policies on the monitoring of banks in distress in which liquidity provisions are conditional on performance when a bad shock occurs. A sequential game model is used to analyze two policies: the first one in which the central bank acts with discretion and the...

We analyze firms’ investment behavior, differentiating firms according to the cash flow levels they experience during their lifecycles. We consequently consider the firm as the basic unit and not firm-year observations. Firms with persistent positive cash flow show higher investment-cash flow...

In a model of repeated games, we determine the conditions under which cooperation is an equilibrium outcome among the G-20 countries. We consider first, that members are uncertain about the lifespan of the G-20. Second, the nature of member countries and their interrelations can change because...

This paper deals with impacts of fossil fuel subsidy reform on economic growth, focusing mostly on the countries of the Middle East and East Africa (MENA) region. We first develop a theoretical growth model, and use it to demonstrate that a country can achieve higher levels of economic growth if...

Bulgaria follows a currency board tied to the euro. The analysis of the effects that adopting the euro might have on its export sector is crucial for Bulgaria and other similar Eastern European countries. Bulgaria, a middle-income country has now more multi-product firms (MPFs) than...

We study impacts of carbon pricing to international transport fuels on fuel consumption and carbon emissions, trade activity, focusing on sea freight which constitutes the most important international trade transport activity. We use the WITS global dataset for international trade for the years...