This paper revisits the problem of adverse selection in the insurance market of Rothschild and Stiglitz (1976). We propose a simple extension of the game-theoretic structure in Hellwig (1987) under which Nash-type strategic interaction between the informed customers and the uninformed firms...

This paper revisits the problem of adverse selection in the insurance market of Rothschild and Stiglitz (QJE, 1976). We propose a simple extension of the game-theoretic structure in Hellwig (EER, 1987) under which Nash-type strategic interaction between the informed customers and the uninformed...

The financial crisis of 2007-08 has underscored the importance of adverse selection in financial markets. This friction has been mostly neglected by macroeconomic models of financial frictions, however, which have focused almost exclusively on the effects of limited pledgeability. In this paper,...

We propose a parsimonious model with adverse selection where delinquency, renegotiation, and bankruptcy all occur in equilibrium as a result of a simple screening mechanism. A borrower has private information about her cost of bankruptcy, and a lender may use random contracts to screen different...

A key issue in increasing women’s participation in productive activities is the possibility of achieving a high work-life balance, both in terms of personal wellbeing and in terms of fair career prospects. The crucial event that challenges any level of work-life balance working women achieve...

We analyse the effects of motherhood on women’s working career using WHIP, a database that records individual work histories together with childbearing events. We investigate two main issues: the career penalty and the wage penalty (better known in the literature as family wage gap). We focus...

Many studies have been devoted to analyse the effect of maternity on working mothers; they mostly refer to countries where female participation is high. Fewer studies consider Southern European countries. This paper aims at filling the gap analysing the effects of motherhood on women’s working...

Many studies have been devoted to analyse the effect of maternity on working mothers; they mostly refer to countries where female participation is high. Fewer studies consider Southern European countries. This paper aims at filling the gap analysing the effects of motherhood on women’s working...

This paper presents a theory in which risk-averse heterogeneously talented entrepreneurs are the key agents driving the process of development and modernisation. Entrepreneurial skills are private information, which prevents full risk sharing. In that setup, development to a modern industrial...