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Compensation Schemes, Liquidity Provision, and Asset Prices: An Experimental Analysis
In an experimental setting in which investors can entrust their money to traders, we investigate how compensation schemes affect liquidity provision and asset prices. Investors face a trade-off between risk and return. At ...
Informal Sector and Economic Development: The Credit Supply Channel
The standard view suggests that removing barriers to entry and improving judicial enforcement reduces informality and boosts investment and growth. However, a general equilibrium approach shows that this conclusion may ...