The thesis studies the economy and society of the province of Guadalajara during the eighteenth century, with an special focus in the production crisis of the 1760s and the way in which the population in the province was able to avoid its negative effects. The contributions of the thesis are several. First it provides an original dataset with more than 200,000 observations that includes time series of grain production, baptisms, burials and prices for the eighteenth century. The dataset also includes a considerable cross section database for more than 1,000 municipalities in New Castile with economic and social variables extracted from the Catastro de la Ensenada. The thesis adds new quantitative information to recent academic debates like the analysis of income inequality in pre-modern times, and the study of economic integration. The results indicate that the province of Guadalajara did not suffer the effects of a Malthusian crisis for several reasons. Firstly, the region was ready to face a production crisis, thanks to a low population density and a high production of grain per capita. Secondly, income inequality decreased, especially improving the situation of the smallest grain producers. This improvement was particularly intense during the last decades of the eighteenth century coinciding with the production crisis. Finally, the levels of economic integration also allowed producers in Guadalajara to increase their incomes by supplying grain to the surrounding urban areas like the city of Madrid. We will therefore conclude that Guadalajara was able to avoid a Malthusian crisis thanks to the structure of its population, a better distribution of income and due to the high level of economic integration with the rest of New Castile.

Inequality rose rapidly in the run up to the 1929 stock market crash and the 2007 financial crisis. Both crises precipitated long and deep recessions. This paper seeks to determine if there is any deeper relationship between inequality and financial stability. The work presents an empirical investigation of the topic and theoretical model of how such a relationship could exist. My original contribution to the literature is threefold: (1) the empirical detection of a small interaction between economic inequality and propensity tofinancial crises, (2) the presentation of a novel measure of financial stability using principal component analysis and its interaction with economic inequality, and (3) the presentation of a novel theoretical model that demonstrates a possible mechanism by which inequality may reduce financial stability.

This thesis explores the real-time dynamics of learning about breaks by utilising different datasets, i.e. simulated and actual (aggregate and firm-level). I am interested in the real-time identification because of its relevance for forecasting. Essentially, I raise three main empirical questions: How often do we encounter mistakes in real-time identification of breaks? How soon do mistakes get corrected in real time? How soon do we learn about the breaks in real time? I compare the effectiveness of different break models and techniques for optimal (discrete) break identification. I find that mistakes are encountered when the true breaks are not observed and when the breaks that are not the true breaks are observed in real time. By using simulated and (actual) aggregate-level datasets for the processes related to the growth rate, mistakes are encountered more often for the break model of unit root. As for the (actual) firm-level dataset of dividend series of (selected) V .S. firms, I observe that mistakes are encountered more often for the break model of trend stationary. Consistently, sequential hypothesis testing for optimal breaks are shown to make fewer mistakes compared to the information criteria used in this study. Moreover, I show that it takes several years to find the true breaks and the collection time for mistakes is usually less than a year. The learning time about the breaks and correction time for mistakes in real time are shown to be longer for the unit root model in the processes related to the growth rate for simulated and (actual) aggregate-level datasets. For the firm-level dataset, the learning and correction time are longer for the trend stationary model in the quarterly compounded process of the firm-level dividend. The learning and correction time by sequential hypothesis testing for optimal breaks are consistently shown to be shorter compared to the information criteria.

Concerns about violations of market efficiency and the presence of selectively informed trading are widely raised. This thesis consists of three related studies, which looks at price reactions and trading behaviour around corporate announcements with respect to market inefficiency and information asymmetry. The first study investigates the issue of long-term price anomalies following public warning announcements and how the introduction of Regulation Fair Disclosure (Reg FD) has affected such price anomalies. The result provides evidence in favour of the success of Reg FD in reducing price anomalies and improving market efficiency. The second study explores the details of market mechanisms in trading behaviour by examining whether different types of corporate announcements affect trading activities. I find that trading volume decreases before expected announcements, which is consistent with models that predict that liquidity traders might postpone their trading plans until after an anticipated news release. I also find that trading volume is boosted before unexpected announcements, which suggests that there is a certain level of informed trading that is taking advantage of information asymmetry in the pre-event period. The third study further tests for informed trading due to selective disclosures before corporate announcements. The result provides evidence that suggests that such trade occurred on a significant scale before the introduction of Reg FD and that this regulation has succeeded in significantly reducing, but not eliminating, selectively informed trades

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In this thesis, I assess the propagation power of financial rigidities, related to firm and bank financial health, and their impact on the fluctuations of external finance premium (efp) and on business cycles. The thesis is organized in four chapters. The introductory chapter is a review of the literature related to the role of firm and bank financial health in general equilibrium models. The emphasis is on the most recent papers that are related to my thesis. In the second chapter, I empirically assess the relative significance of financial health of non-financial and financial sector for the external finance premium (efp) based on US and limited UK data using unrestricted vector autoregression (VAR). I also evaluate to what extent fundamental shocks like the total factor productivity (tfp), investment specific technology (ist) and monetary policy drive efp and output. The result that emerges from this analysis is that efp and output are primarily driven by the tfp shocks and second by monetary policy shocks. In addition, financial sector net worth, rather than non-financial sector net worth, drives efp and output when fundamental shocks are absent. In the third chapter, I set up a general equilibrium framework with two financial rigidities on firm and bank level to investigate the propagation of the fundamental shocks on efp and other macro and financial variables. Financial frictions are set-up as leverage constraints on borrower and lender in this framework (named FAGK). To evaluate the propagation of shocks in each model I compare the second moments and impulse responses to those from a financial accelerator (FA) and a bank friction model (GK). Two main results come out. First, baseline FAGK model yields greater volatility of efp and of real variables, compared to FA or GK when driven by shocks of the same size. Second, the dynamics of overall efp are dominated by the fluctuations of the lender premium which is propagated by the bank constraint in FAGK model. In the second part of the chapter, I evaluate how changes in the severity of frictions or in the conduct of monetary policy may lead to greater propagating power of shocks in the model economy. The main conclusions are that, negligible policy response to output gap and a more persistent policy rate may contribute to greater propagating power of financial frictions. In chapter 4, I estimate the baseline FAGK model and two single-friction models, FA and GK, employing Bayesian estimation method with quarterly data spanning 1955-2014. I assess the business cycle properties of each estimated model-economy and compare them to actual data. The baseline model can outperform the other two models, FA and GK, in describing the economy for the period. To assess the stability of parameters I estimate the baseline FAGK model in two sub-samples, a tranquil sub-period, 1985-2004, and a recession period, 2005-2014. Next, I analyse the factors behind the increase in volatility during the recession period. Quantitative analysis based on counterfactual exercises leads me to conclude that the decline in investment adjustment cost and the increase in dispersion of returns across firms have shaped the business cycle properties of efp and of most indicators during the recession.

The purpose of this thesis is to examine the interaction between financial frictions and macroeconomic variables. A range models are used which encompasses both theoretical and empirical approaches. The thesis attempts to address several questions with the interaction between changes in borrowing constraints, and so credit markets, and their impact on macroeconomic variables the main themes throughout the chapters. The thesis explores the role of changes in borrowing limits on the amplification of shocks. Utilising the theoretical collateral constraints model it also draws together two separate literatures to examine the interaction between collateral constraints and the steady state interest rate. Finally the thesis conducts an empirical analysis of the impact of an array of financial frictions and financial stress measures on macroeconomic aggregates. The empirical approach used allows this analysis to be conducted in a multi-country setting and so allow the issue of the international propagation of shock to be taken into account. In terms of results, from the theoretical models it is found that financial liberalisation, as modelled by a loosening of the borrowing constraint, leads to a greater amplification of financial shocks compared to conventional shocks. In relation to the steady state interest rate the results suggest that a financial disruption can lead a persistently low interest rate. It is also found that an ageing population and higher debt levels could influence the probability of an economy entering a situation of persistently low interest rates. From the empirical analysis it is found that many measures proposed in the literature are not strong transmitters of financial stress, this is particularity true of credit which is a commonly used shock measure in the literature. It is found that measures of financial frictions that are constructed from corporate bond market data have the most impact on macroeconomic variables.

A growing body of scholarship suggests that capitalism is not inevitable and that moments of crisis provide an opportunity for critique and social transformation. Yet literature on social movements employing direct-action tactics to unmake capitalism and challenge austerity is still lacking. It has neither adequately dealt with non-capitalist practices, nor has it substantiated claims of efficacy in social change. This thesis uses a novel research approach and presents new empirical evidence to deal with these shortcomings. It addresses the timely questions of whether and how these social movements support life despite-yet-beyond the recession. It thinks with, yet beyond, a practice-turn in social movement scholarship to break new ground for literature on non-capitalist practices, alternative economies and social movements. Specifically, the thesis provides a multi-sited ethnographic case-study of three Athenian crisis community currency movements. This informs the first study of community currencies dealing with the nitty-gritty of practicing the alternative economy. In so doing, it outlines what happens when emancipatory ideas of using alternative currencies to support everyday practices come into contact with the realities of modern-day Athens. It details a process of experimentation, learning-in-practice and contestation that both underlies and undermines the emergence of non-capitalist practices. This approach enables an enlightened response on whether – and how – living despite-yet-beyond austerity is possible. The findings suggest that community currencies are only partly successful in enabling non-capitalist practices. And yet, the research uncovers a side of Athens as a crucible of creative resistance that would otherwise go unnoticed. If this is accepted, the thesis concludes with a novel conceptual model and an agenda for future research on non-capitalism. This will play-out both to the benefit of scholarship and society alike, as it promises to conceptually advance the field and to further corroborate the non-capitalist imaginary – enhancing faith in alternatives to austerity and capitalism.

The thesis is arranged as three topics. The first topic is a joint work with my supervisor Paula Hill. We compare diverse measures of default risk (including both academic models and credit ratings) before examining its relationship with stock returns. The second topic is a joint work with my supervisors Neslihan Ozkan and Paula Hill and we examine the relationship between firm default risk and executive compensation. The third topic is a sole authored work in which I provide more evidence that correlated overpayments of CEOs and directors are symptomatic of agency problems related to cronyism. Cronyism is a term used to describe a phenomenon in which directors do not protect the interests of shareholders and choose to collude with the CEO for private benefits (Brick et al., 2006). In the first essay, we find considerable variation in the mean probability of default across our academic models. The correlations between the measures of default risk are significant at a 1 % level and yet tend to be less than 50%. The rating-based measures of default risk (i.e. S&P's and Moody's ratings) are highly correlated with each other (0.962) but have a maximum correlation of 0.498 with the academic models. Moreover, we show that different assumptions can lead to divergent assessments of default risk even where default risk measures appear similar theoretically, such as those based on the theories of Black and Scholes (1973) and Merton (1974). Nonetheless, we find that the relationship between stock returns and diverse measures of default risk tends to be consistent. Default risk is a significant determinant of stock returns with a "hump backed" relationship, as predicted by Garlappi and Yan (20 11). This relationship holds even after controlling for very high default risk firms, which contrasts with the findings of Avramov et al. (2009) that the relationship between stock returns and default risk is driven by firms with low credit quality. Given the reasonable consistency in the observed relationship between stock returns and diverse measures of default risk, we find little evidence that differences in the conclusions of The thesis is arranged as three topics. The first topic is a joint work with my supervisor Paula Hill. We compare diverse measures of default risk (including both academic models and credit ratings) before examining its relationship with stock returns. The second topic is a joint work with my supervisors Neslihan Ozkan and Paula Hill and we examine the relationship between firm default risk and executive compensation. The third topic is a sole authored work in which I provide more evidence that correlated overpayments of CEOs and directors are symptomatic of agency problems related to cronyism. Cronyism is a term used to describe a phenomenon in which directors do not protect the interests of shareholders and choose to collude with the CEO for private benefits (Brick et aI., 2006). In the first essay, we find considerable variation in the mean probability of default across our academic models. The correlations between the measures of default risk are significant at a 1 % level and yet tend to be less than 50%. The rating-based measures of default risk (i.e. S&P's and Moody's ratings) are highly correlated with each other (0.962) but have a maximum correlation of 0.498 with the academic models. Moreover, we show that different assumptions can lead to divergent assessments of default risk even where default risk measures appear similar theoretically, such as those based on the theories of Black and Scholes (1973) and Merton (1974). Nonetheless, we find that the relationship between stock returns and diverse measures of default risk tends to be consistent. Default risk is a significant determinant of stock returns with a "hump backed" relationship, as predicted by Garlappi and Yan (20 11). This relationship holds even after controlling for very high default risk firms, which contrasts with the findings of A vramov et al. (2009) that the relationshi p between stock returns and default risk is driven by firms with low credit quality. Given the reasonable consistency in the observed relationship between stock returns and diverse measures of default risk, we find little evidence that differences in the conclusions of performance. However, these effects of excess compensation on CEO turnover are mitigated by total institutional ownership. In addition, as institutional ownership increases, the positive effect of director compensation on CEO cash compensation is also significantly reduced. FUlther, in firms with high levels of institutional ownership the negative impact of excess compensation on firm performance is weakened. The fact that external monitoring by institutional investors mitigates the effects of excess compensation means the excess compensation of directors and CEOs is at least partly due to agency problems.

This thesis comprises four essays that apply a range of techniques in microeconomic theory to address an eclectic collection of problems. The first essay explores the peer review process, and asks how the diffusion of information is determined by the procedure followed by reviewers. The second essay models the way in which students learn, and applies the model to reforms in higher education. The third essay examines charitable giving, in particular by finding and explaining the incidence of donations which are large and anonymous. The final essay investigates the effects of the controversial 'Stamp Duty Land Tax' imposed on house . buyers in the UK, and characterizes the winners and losers from the distortion caused by the tax.