The paper models the interaction between risk taking in the financial sector and central bank policy for the case of pure illiquidity risk. It is shown that, when bad states are highly unlikely, public provision of liquidity may improve the allocation, even though it encourages more risk taking (less liquid investment) by private banks. In general, however, there is an incentive of financial in...

J Adv Pract Oncol 2012;3:96–102 T he issue of drug shortages is only one of the many crucial concerns facing oncology advanced practitioners (APs) in the United States today. However, it may be the most critical issue affecting shortand long-term patient outcomes. Shortterm outcomes may be affected by treatment delays, treatment with less effective alternatives, and increased toxicity. Long-ter...

Carolyn M. Veneri is an economist in the Office of Employment Projections, Bureau of Labor Statistics. The Nation’s economy has enjoyed more than 7 years of expansion, during which the national unemployment rate declined from 7.5 percent in 1992 to 4.5 percent in 1998, the lowest level since 1969. The 1998 unemployment rate dipped below 2 percent in some States. As the labor market tightened ov...

Our paper offers the first justification for the U.S. bankruptcy code, in which firms are not allowed to commit themselves ex-ante in their lending agreements either to (Chapter 7) liquidation or to (Chapter 11) reorganization in case of distress ex-post. If fire-sale liquidation imposes negative externalities on their peers, then firms can be collectively better off if they are all forced into...