Andrew Weiss (economist)

Andrew Weiss is an economist known for his research in the areas of asymmetric information, credit rationing, labor markets, and development economics. His work has significantly contributed to the understanding of how information imbalances affect economic outcomes, particularly in financial and labor markets.

Weiss is perhaps most recognized for his work on credit rationing, demonstrating how banks may choose to limit the supply of credit even when there is excess demand at the prevailing interest rate. This can occur due to adverse selection and moral hazard problems arising from imperfect information. By rationing credit, banks can avoid lending to riskier borrowers who are more likely to default.

His research also extends to the analysis of efficiency wages, where firms may choose to pay wages above the market-clearing level to improve worker productivity. This can be attributed to factors such as reduced shirking, lower turnover, and improved worker morale.

Weiss has published extensively in leading academic journals and has held positions at various universities and research institutions. His work has influenced policy debates related to financial regulation, labor market policies, and economic development strategies. He has contributed to the theoretical understanding of market failures stemming from asymmetric information and its implications for economic efficiency and equity. His research continues to be relevant in contemporary discussions surrounding financial stability and labor market dynamics.