This paper analyses the impact of public disclosure of banks’ risk exposure on banks’ risk taking incentives and its … their loan portfolio, public disclosure reduces the probability of banking crises. When asset risk is driven largely by … between asset risk and the deposit rate demanded by informed depositors. …

Recent empirical work suggests a strong connection between the incentives money managers are offered and their risk … riskiness of the portfolio. This represents a departure from the existing literature on agency theory in that moral hazard is … not only effort exertion but also risk taking behavior. The moral hazard problem with risk taking involves an incentive …

Motivated the European debt crisis, we construct a tractable theory of sovereign debt and structural reforms under … default threat, creditors can make a take-it-or-leave-it debt haircut offer to the sovereign. The risk of renegotiation is …

The Paper studies the effects of tax policy on venture capital activity. Entrepreneurs pursue a single high-risk …

We explore the role of firms in insuring risk-averse workers. As a device that allows workers to commit to the delivery … of their output, the firm arises endogenously as an alternative to the spot market if workers are sufficiently risk …

We study the design of a sequence of two contests between a pair of identical risk averse employees whose effort …