The first summer meeting of the ESF Network in Financial Markets, which is administered by the Centre for Economic Policy Research on behalf of the European Science Foundation, was held from 1 to 22 July 1990 at the Study Centre of the Swiss National Bank at Gerzensee. The meeting was divided into three sessions of a week each, on the themes of `Corporate Finance', `Financial Regulation' and `The Performance of Markets'. Financial support and hospitality were provided by the Swiss National Bank, and a full report of the proceedings of the workshop sessions will appear shortly in issue no. 3 of the Newsletter of the Network in Financial Markets, available from CEPR. A number of the papers presented will be published in a new series of Working Papers of the Network in Financial Markets, available from CEPR as part of the Network's publication programme sponsored by Paribas. The following papers were presented at the Gerzensee meeting.
Week 1: Corporate Finance
`Optimal Incentive Schemes and the Coexistence of Debt and Equity', by Philippe Aghion (Départment et Laboratoire d'Economie Théorique et Appliquée, Paris, and CEPR)
`The Role of Collateral in a Model of Debt Renegotiation', by Helmut Bester (Universität Bonn)
`Dynamic Investment Models and the Firm's Investment Policy', by Stephen Bond (Institute of Economics and Statistics, Oxford)
`Callable Debt Contracts: Re-Negotiation and Contract Design with Ex-Post Private Information', by Gabriela Chiesa (Università di Brescia)
`Investment and Taxation via Q and the Cost of Capital with Tax Asymmetries', by Michael Devereux (Institute for Fiscal Studies, London)
`A Discussion of Correct Measures of Information Asymmetry', by Nathalie Dierkens (INSEAD)
`Natural Oligopoly in Intermediated Markets', by Thomas Gehrig (Universität Basel)
`An Implicit Contract Approach to Employee Stock Ownership Plans', by Dan Kovenick (Erasmus Universiteit Rotterdam)
`Asset Pricing with In- and Outflow Constraints', by Kristian Rydquist (Stockholm School of Economics)
`Risks and Returns to Risk Arbitrage', by Theo Vermaelen (INSEAD)
`Bank Finance and Long-Term Investment', by Ernst-Ludwig von Thadden (Universität Basel)
Week 2: Financial Regulation
`A Theory of Secured Debt: Contracting with Multiple Creditors', by Patrick Bolton (Ecole Polytechnique, Paris, and CEPR) and David Scharfstein (MIT)
`An Industrial Economics Approach to Financial Markets', by Phil Davis (Bank of England)
`Economies of Scale and Scope in the French Mutual Funds (SICAV) Industry', by Jean Dermine and Lars-Hendrik Röller (INSEAD)
`Informed Speculators and Insider Trading Some Regulatory Aspects', by Martin Hellwig (Universität Basel and CEPR)
`Insider Trading and Market Manipulations: A Weak Invisible Hand Result', by Jean-Charles Rochet (Université de Toulouse)
`Auction Markets, Dealership Markets, and Execution Risk <196> A Simple Example', by Ailsa Roell (LSE) and Marco Pagano (Università di Napoli and CEPR)`Can Small Entry Barriers Have Large Effects on Competition?', by Paul Seabright (Churchill College, Cambridge, and CEPR)
`Imperfect Competition, Volatility and Circuit Breakers', by Peter Simmons (University of York)
`Elimination of the Double Taxation of Dividends: Is the German Experience Relevant for the USA?', by Richard Stehle and Wolf Bay (Universität Augsburg)
`Uncertainty, Collusion and returns in a Multiple-Bid, Multiple-Unit Auction with Resale', by Steven Umlauf (London Business School)
`Competition in Banking', by Xavier Vives and Carmen Matutes (Universidad Autónoma de Barcelona and CEPR)
Week 3: The Performance of Financial Markets
`Volatility, Information and Noise Trading', by Jean-Pierre Danthine (Université de Lausanne and CEPR) and Serge Moresi (MIT)
`The Pricing of Crude Oil Futures Options Contracts', by Rajna Gibson (Centre HEC-ISA, Jouy-en-Josas) and Eduardo Schwartz (University of California, Los Angeles)
`Convenience Yield and Basis Risk: An Application to the WTI Contract on NYMEX', by Christopher Gilbert (Queen Mary and Westfield College, London, and CEPR)
`Disequilibrium in the London Stock Market', by Ruben Lee (Nuffield College, Oxford)
`Transaction Costs, Trading Volume and Price Volatility on the Stockholm Stock Exchange, Progress Report June 1990', by Ragnar Lindgren and Anders Westlund (Stockholm School of Economics)
`Financial Liberalisation, the Housing Markets and the Current Account', by David Miles (Birkbeck College, London)
`Volatility Trading', by Anthony Neuberger (London Business School)
`Information Supply with a Linear Signalling Rule: A Note', by Giovanna Nicodano (Princeton University and Università Bocconi, Milano)
`A General Method of Moments for Estimating the Parameters of Stochastic Processes for Asset Prices: An Application to the Jump-Diffusion Process for Oil Futures', by Andrew Powell (Nuffield College, Oxford)
`Floating Deep Out of the Parity: A Study of Issuer Risk in the Market for Italian Floating Rate Bonds', by Riccardo Rovelli, Alessandro Citenna and Francesco Bruni (Università Bocconi, Milano)
`Earnings-Related Borrowing Restrictions: Empirical Evidence from a Pseudo Panel for the UK', by Guglielmo Weber (University College, London, and Institute for Fiscal Studies, London)