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A Critical Evaluation of Bail-in as a Bank Recapitalisation Mechanism

Avgouleas, Emilios; Goodhart, Charles A - C.E.P.R. Discussion Papers - 2014

Many of the world’s developed economies have introduced, or are planning to introduce, bank bail-in regimes. Both the … planned EU resolution regime and the European Stability Mechanism Treaty involve the participation of bank creditors in … bearing the costs of bank recapitalization via the bail-in process as one of the (main) mechanisms for restoring a failing …

Persistent link: https://www.econbiz.de/10011083962

Capital Requirements, Market Power and Risk-Taking in Banking

Repullo, Rafael - C.E.P.R. Discussion Papers - 2003

This Paper presents a dynamic model of imperfect competition in banking where banks can invest in a prudent or a gambling asset. We show that if intermediation margins are small, the banks’ franchise values will be small, and in the absence of regulation only a gambling equilibrium will exist....

Persistent link: https://www.econbiz.de/10005067507

Too Many to Fail - An Analysis of Time Inconsistency in Bank Closure Policies

Acharya, Viral V; Yorulmazer, Tanju - C.E.P.R. Discussion Papers - 2004

This Paper shows that bank closure policies suffer from a ‘too-many-to-fail’ problem: when the number of bank failures … is large, the regulator finds it ex-post optimal to bail out some or all failed banks, whereas when the number of bank …-ante standpoint. We formalize this time-inconsistency of bank regulation. We also argue that by allowing banks to purchase failed …

Persistent link: https://www.econbiz.de/10005136753

Efficient Recapitalization

Philippon, Thomas; Schnabl, Philipp - C.E.P.R. Discussion Papers - 2009

We analyze public interventions to alleviate debt overhang among private firms when the government has limited information and limited resources. We compare the efficiency of buying equity, purchasing existing assets, and providing debt guarantees. With symmetric information, all the...

Persistent link: https://www.econbiz.de/10008577813

The Internal Governance of Firms

Acharya, Viral V; Myers, Stewart C; Rajan, Raghuram G - C.E.P.R. Discussion Papers - 2009

theory of investment and dividend policy, where dividends are paid by self-interested CEOs to maintain a balance between …

Persistent link: https://www.econbiz.de/10004980207

Unemployment Insurance Design: Inducing Moving and Retraining

Hassler, John; Mora, Rodríguez; Vicente, José - C.E.P.R. Discussion Papers - 2007

Evidence suggests that unemployed individuals can sometimes affect their job prospects by undertaking a costly action like deciding to move or retrain. Realistically, such an opportunity only arises for some individuals and the identity of those may be unobservable ex-ante. The problem of...

Persistent link: https://www.econbiz.de/10005504238

Risk Taking and Optimal Contracts for Money Managers

Palomino, Frédéric; Prat, Andrea - C.E.P.R. Discussion Papers - 1999

riskiness of the portfolio. This represents a departure from the existing literature on agency theory in that moral hazard is … portfolio. This represents a departure from the existing literature on agency theory in that moral hazard is not only effort …

Persistent link: https://www.econbiz.de/10005504241

The Labour Market and Corporate Structure

Acemoglu, Daron; Newman, Andrew - C.E.P.R. Discussion Papers - 1997

This paper analyses the impact of labour demand and labour market regulations on the corporate structure of fims. It finds that higher wages are associated with lower monitoring, irrespective of whether these high wages are caused by labour market regulations, unions or higher labour demand....

Persistent link: https://www.econbiz.de/10005504251

A Dynamic Analysis of the Demand for Health Insurance and Health Care

Bolhaar, Jonneke; Lindeboom, Maarten; van der Klaauw, Bas - C.E.P.R. Discussion Papers - 2008

We investigate the presence of moral hazard and advantageous or adverse selection in a market for supplementary health insurance. For this we specify and estimate dynamic models for health insurance decisions and health care utilization. Estimates of the health care utilization models indicate...

Persistent link: https://www.econbiz.de/10005504294

Risk-bearing and Entrepreneurship

Newman, Andrew - C.E.P.R. Discussion Papers - 2007

In the 'Knightian' theory of entrepreneurship, entrepreneurs provide insurance to workers by paying fixed wages and …

Persistent link: https://www.econbiz.de/10005504306