E CONOMIC discrimination has been diffi-cult to explain by means of standard neoclassical
economic models that assume pervasive competition. Why, after all, should two groups of …

During the past decade, the importance of a sound microeconomic foundation for aggregate
economic analysis has been increasingly emphasized. In this context, a satisfactory theory …

Financial intermediaries are subject to various forms of regulation, intended to ensure their
solvency. Commonly, regulators seek to achieve this goal by imposing an upper bound on …

How bankers choose the riskiness of their individual assets is an important question. It is
well known that fixed-premium deposit insurance leads a bank to prefer a high-variance …

A number of authors, examining deviations of actual rates of currency depreciation from
forward discounts, have claimed to find evidence of risk premiums. If these deviations are …

It has long been recognized that the useful application of the portfolio selection theory of
Markowitz [lOJ and Tobin [19J,[20J is limited by the restrictive assumptions placed on the …

Econometric systems of equations which purport to explain the allocation of some
predetermined aggregate among its components are collectively known as allocation …

IT IS WIDELY RECOGNIZED that the theory of the depository financial intermediary is not
well developed. 1 There are at least two areas, however, where a thorough understanding of …

Furthermore, if the effects of regulations on user costs are excluded, it is impossible to
analyze monetary policy effects. Chapter 2 examines the principal areas of regulation that …

These seventeen essays provide an accessible and thorough reference for understanding
the role of exchange rates in the international monetary system since 1973, when the rates …