The effects of public policy programs which aim at internalizing spill-overs due to successful innovation are analyzed in a sequential double-sided moral hazard doublesided adverse selection framework. The central focus lies in analyzing their impact on contract design. We show that in our framework only ex post grants are a robust instrument for implementing the first-best situation, whereas t...

Increasingly, policymakers look to the small business sector as a potential engine of economic growth. Policies to promote small businesses include tax relief, direct subsidies, and indirect subsidies through government lending programs. Encouraging lending to small business is the primary policy objective of the Small Business Administration’s (SBA) loan-guarantee program. Using a panel data s...

We consider binary private contributions to public good projects that succeed when the number of contributors exceeds a threshold. show for standard distributions contribution costs, valuable threshold are more likely they require contributors. Raising success reduces free-riding incentives, and this strategic effect dominates direct effect. Common intuition easier only holds cost with right ta...

We estimate the value of competition in United States Forest Service (USFS) timber auctions, in the context of the Reagan administration’s bailout of firms that faced substantial losses on existing contracts. We use a model with endogenous entry by asymmetric firms, allowing survivors to respond to the exit of bailed-out firms by entering more auctions and for these marginal entrants to have lo...

Earlier kinetics studies on cytoglobin did not assign functional properties to specific structural forms. Here, we used defined monomeric and dimeric forms and cysteine mutants to show that an intramolecular disulfide bond (C38-C83) alters the dissociation rate constant of the intrinsic histidine (H81) (∼1000 fold), thus controlling binding of extrinsic ligands. Through time-resolved spectra we...

Modeling Income Dynamics for Public Policy Design: An Application to Income Contingent Student Loans This paper studies the importance of dynamic earnings modeling for the design of income contingent student loans (ICLs). ICLs have been shown to be theoretically optimal in terms of efficiency in the presence of risk aversion, adverse selection and moral hazard, and have attractive equity proper...

We study how to design an optimal government loan program for risky R&D projects with positive externalities. With adverse selection, the contract involves a high interest rate but nearly zero cofinancing by entrepreneur. This contrasts sharply observed schemes. selection and moral hazard, allowing two levels of effort entrepreneur, policy consists menu at most contracts, one self-financing...

A gazdasagi valsaghelyzetekben gyakran drasztikusan visszaeső hitelkinalat jelentősen ronthatja a vallalatok hitelhez jutasi lehetősegeit, igy kilabalasi eselyeiket, realgazdasagi teljesitmenyuket is. Mennyiben enyhithetik e problemat tamogatott hitelek? Tanulmanyunkban ezt vizsgaljuk meg koronavirus-jarvany miatt Magyarorszagon bevezetett jegybanki es allami hitelprogramok foglalkoztatasi hata...

We explore the impact of central government grants on local house prices in England using a panel data set of local authorities (LAs) from 2001 to 2008. Electoral targeting of grants to LAs by the incumbent national government provides an exogenous source of variation in grants that we exploit to identify their causal effect on house prices. Our results indicate substantial or even full capital...

The paper examines the applicability of GDP-linked bonds for the financing of developing countries and emerging markets. GDP-linked bonds are bonds of which the coupon and/or redemption payments are tied to the GDP of the issuing country. The study encompasses a detailed empirical analysis of their pricing behaviour, the pricing sensitivities to changes in GDP, and of their behaviour in a portf...