The Threat of Capital Drain: A Rationale for Public Banks?

This paper yields a rationale for why subsidized public banks may be desirable from a regional perspective in a financially integrated economy. We present a model with credit rationing and heterogeneous regions in which public banks prevent a capital drain from poorer to richer regions by subsidizing local depositors, for example, through a public guarantee. Under some conditions, cooperative banks can perform the same function without any subsidization; however, they may be crowded out by public banks. We also discuss the impact of the political structure on the emergence of public banks in a political-economy setting and the role of interregional mobility

Analysis of long-term observations of NOx and CO in megacities and application to constraining emissions inventories

Long-term atmospheric NOx/CO enhancement ratios in megacities provide evaluations of emission inventories. A fuel-based emission inventory approach that diverges from conventional bottom-up inventory methods explains 1970–2015 trends in NOx/CO enhancement ratios in Los Angeles. Combining this comparison with similar measurements in other U.S. cities demonstrates that motor vehicle emissions controls were largely responsible for U.S. urban NOx/CO trends in the past half century. Differing NOx/CO enhancement ratio trends in U.S. and European cities over the past 25 years highlights alternative strategies for mitigating transportation emissions, reflecting Europe's increased use of light-duty diesel vehicles and correspondingly slower decreases in NOx emissions compared to the U.S. A global inventory widely used by global chemistry models fails to capture these long-term trends and regional differences in U.S. and Europe megacity NOx/CO enhancement ratios, possibly contributing to these models' inability to accurately reproduce observed long-term changes in tropospheric ozone