The current crisis raises the question whether loans to SMEs in emerging markets are inherently more risky. We use a unique unbalanced panel of nearly 700 loans made to SMEs in Slovakia between 2000 and 2005. Several probit and panel probit models show that liquidity and profitability factors...

In the current recession, politicians grant state aid of yet unknown dimensions. But what is the most efficient measure for granting such aid? We use a theoretical model with firms that differ in their creditworthiness and compare different types of direct subsidies with indirectly subsidized...

Do empires affect human values and behavior long after their demise? We hypothesize that the Habsburg Empire, which was characterized by a localized and well-respected administration, increased people’s trust in local state services. In several Eastern Euro-pean countries, communities on both...

Viele Teile Europas wurden über Jahrhunderte hinweg von Großreichen beherrscht. Haben diese Imperien nach ihrer formellen Auflösung ein Vermächtnis im Verhältnis der Bürger zu ihren staatlichen Institutionen hinterlassen? Sascha O. Becker, University of Warwick, Katrin Boeckh,...