We study the e¤ects of securitization on interbank lending competition when banks see private signals of local applicants’ repayment chances. If banks cannot securitize, the outcome is e¢ cient: they lend to their most creditworthy local applicants. With securitization, banks lend also to remote applicants with strong observables in order to lessen the lemons problem they face in selling their ...

The anti-scurvy properties of oranges and lemons were first reported in 1747 by Dr. John Lind, a ship’s surgeon in the British Royal Navy, in his Treatise on the Scurvy. It took almost two hundred years before ascorbic acid or vitamin C was chemically identified and synthesized in 1933. For this work Szent-Gyorgyi and Walter Norman Haworth shared the Nobel Prize in Chemistry in 1937. This vitam...

There is growing empirical evidence showing that taxes encourage use of debt in large profi table fi rms and discourage it in less profi table fi rms. There has been debate, though, on the source of any non-tax costs from debt fi nance offsetting the tax advantages of debt. This paper lays out competing hypotheses, notes that the existing empirical evidence is more supportive of a “lemons” mode...

Across cultures and languages, people find similarities between the products of different senses in mysterious ways. By studying what is called cross-modal correspondences, cognitive psychologists discovered that lemons are fast rather than slow, boulders are sour, and red is heavier than yellow. Are these cross-modal correspondences established via sensory perception or can they be learned mer...

When imported slaves were first sold in New Orleans, buyers were unaware of the slaves’ unobservable characteristics. In time, the new owners learned more about their slaves and may have resold the “lemons.” Previous research suggests that buyers anticipated such adverse selection and reduced their bids for these slaves. Consequently, we should observe lower prices for resold slaves. We test th...

We present theoretical descriptions and measurements of optical beams carrying isolated polarization-singularity C-points. Our analysis covers all types of C-points, including asymmetric lemons, stars and monstars. They are formed by the superposition of a circularly polarized mode carrying an optical vortex and a fundamental Gaussian mode in the opposite state of polarization. The type of C-po...

Strong indications of perspective can often come from collocations of arbitrary length; for example, someone writing get the government out of my X is typically expressing a conservative rather than progressive viewpoint. However, going beyond unigram or bigram features in perspective classification gives rise to problems of data sparsity. We address this problem using nonparametric Bayesian mo...

Two bookmakers compete in Bertrand fashion while setting odds on the outcomes of a sporting contest where an influential punter (or betting syndicate) may bribe some player(s) to fix the contest. Zero profit and bribe prevention may not always hold together. When the influential punter is quite powerful, the bookies may coordinate on prices and earn positive profits for fear of letting the ‘lem...

GAAP mandates a variety of departures from historical cost asset valuation. Here we o¤er a simple model that leads to such variety, depending on regulatory objectives and the magnitude of various economic forces. The central feature of the model is entrepreneurial investment in an asset followed by private information that cannot be communicated. A lemons problem arises in the asset resale mark...

Online quality assessment of various horticultural products using machine vision provides not only quick but also objective, consistent and quantitative measurement. Horticultural products of different sizes and shapes (circular or elliptical) are classified based on the area occupied, which is calculated by known geometrical method. Another factor in the classification is the detection of defe...