Bank capital requirements would entail large social costs if they made resource allocation suboptimal and banking services costly by unduly limiting the banks' ability to lend. This paper considers three main factors that may make capital requirements relevant, namely, deposit insurance...

We provide a welfare comparison of the two types of banking regulation commonly used to address moral hazard problems, deposit rate ceilings and minimum capital requirements. It is well understood that interference with the price mechanism may lead to inefficiencies -- in the case of a deposit...

This paper uses a DSGE model with banks and financial frictions in credit markets to assess the medium-term macroeconomic costs of increasing capital and liquidity requirements. The analysis indicates that the macroeconomic costs of such measures are sensitive to the length of the implementation...

This paper examines the transitional macroeconomic costs of a synchronized global increase in bank capital adequacy requirements under Basel III, as well as a capital increase covering globally systemically important banks. The analysis, using an estimated multi-country model, contributed to the...

This study examines the determinants of capital adequacy and voluntary capital buffers among microfinance institutions (MFIs). We apply the two-stage least squares (2SLS) with instrumental variables to account for endogeneity. Using quarterly panel data of 439 MFIs in Ghana covering the period...

The paper provides a methodology which is suitable for the analysis of the social cost of disease and the benefits and cost of health intervention by integrating public health analysis and economics. The approach developed in the paper is applied to food-borne diarrhea in Rwanda. The results...