Facundo Albornoz, Antonio Cabrales and Esther Hauk investigate the interplay and effects of a person’s optimal group membership and the amount of effort placed in socializing and producing within the group.
Married couples are healthier than singles. New work by Nezih Guner, Yuliya Kulikova and Joan Llull seeks to determine the direction of causality by exploiting panel data. (This post first appeared on VoxEU.org)
Does judiciary presence affect a politician’s management or possible graft of public resources? Stephan Litschig and Yves Zamboni estimate the effect of judges and prosecutors on the management of public resources in Brazil.
Yael Hochberg, Carlos Serrano, and Rosemarie Ziedonis estimate the effect of patent trading activity on the rate of startup lending and the role of venture capital in accessing lending markets.
How does bank size relate to the quality of loans? New work by Hugo Rodríguez Mendizábal presents evidence of a large and opposite relationship in loan quality between large and small banks in the U.S.
Xavier Freixas and Kebin Ma reexamine the classical issue of the possible trade-offs between banking competition and financial stability by highlighting different types of risk and the role of leverage. By means of a simple model, they show that competition can affect portfolio risk, insolvency risk, liquidity risk, and systemic risk in different ways.