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Gambling for resurrection in Iceland: the rise and fall of the banks
Baldursson, Fridrik Mar; Portes, Richard - C.E.P.R. Discussion Papers - 2013
We examine the evolution of the Icelandic banking sector in its macroeconomic environment. The story culminates in the crisis of October 2008, when all three major banks in Iceland collapsed in three successive days. The country is still struggling to cope with the consequences. The paper...
Persistent link: https://www.econbiz.de/10011084274
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Paulson's Gift
Veronesi, Pietro; Zingales, Luigi - C.E.P.R. Discussion Papers - 2009
We calculate the costs and benefits of the largest ever U.S. Government intervention in the financial sector announced the 2008 Columbus-day weekend. We estimate that this intervention increased the value of banks’ financial claims by $131 billion at a taxpayers’cost of $25 -$47 billions...
Persistent link: https://www.econbiz.de/10008567799
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From Great Depression to Great Credit Crisis: Similarities, Differences and Lessons
Almunia, Miguel; Bénétrix, Agustín; Eichengreen, Barry; … - C.E.P.R. Discussion Papers - 2009
The Great Depression of the 1930s and the Great Credit Crisis of the 2000s had similar causes but elicited strikingly different policy responses. It may still be too early to assess the effectiveness of current policy responses, but it is possible to analyze monetary and fiscal policies in the...
Persistent link: https://www.econbiz.de/10008491721
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Financial Innovation, the Discovery of Risk, and the U.S. Credit Crisis
Boz, Emine; Mendoza, Enrique G - C.E.P.R. Discussion Papers - 2010
Uncertainty about the riskiness of a new financial environment was an important factor behind the U.S. credit crisis. We show that a boom-bust cycle in debt, asset prices and consumption characterizes the equilibrium dynamics of a model with a collateral constraint in which agents learn "by...
Persistent link: https://www.econbiz.de/10008466355
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Creditor Rights and Corporate Risk-taking
Acharya, Viral V; Amihud, Yakov; Litov, Lubomir P. - C.E.P.R. Discussion Papers - 2008
rights companies’ operating risk is lower, and acquirers with low-recovery assets prefer targets with high-recovery assets …
Persistent link: https://www.econbiz.de/10005792443
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Financial Crises and Economic Activity
Cecchetti, Stephen G; Kohler, Marion; Upper, Christian - C.E.P.R. Discussion Papers - 2009
We study the output costs of 40 systemic banking crises since 1980. Most, but not all, crises in our sample coincide with a sharp contraction in output from which it took several years to recover. Our main findings are as follows. First, the current financial crisis is unlike any others in terms...
Persistent link: https://www.econbiz.de/10008472105
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Understanding the Recovery Rates on Defaulted Securities
Acharya, Viral V; Bharath, Sreedhar T; Srinivasan, Anand - C.E.P.R. Discussion Papers - 2003
We document empirically the determinants of the observed recovery rates on defaulted securities in the United States … over the period 1982–1999. The recovery rates are measured using the prices of defaulted securities at the time of default … securities, industry conditions at the time of default are found to be robust and important determinants of the recovery rates …
Persistent link: https://www.econbiz.de/10005666480
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Courts and Banks: Effects of Judicial Enforcement on Credit Markets
Bianco, Magda; Jappelli, Tullio; Pagano, Marco - C.E.P.R. Discussion Papers - 2002
The cost of enforcing contracts is a key determinant of market performance. We document this point with reference to the credit market in a model of opportunistic debtors and inefficient courts. According to the model, improvements in judicial efficiency should reduce credit rationing and...
Persistent link: https://www.econbiz.de/10005123567
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Information Sharing, Lending and Defaults: Cross-Country Evidence
Jappelli, Tullio; Pagano, Marco - C.E.P.R. Discussion Papers - 1999
Theory predicts that information sharing among lenders attenuates adverse selection and moral hazard, and can therefore increase lending and reduce default rates. To test these predictions, we construct a new international data set on private credit bureaus and public credit registers. We find...
Persistent link: https://www.econbiz.de/10005497918
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Do Credit Markets Discipline Sovereign Borrowers? Evidence from US States
Bayoumi, Tamim; Goldstein, Morris; Woglom, Geoffrey - C.E.P.R. Discussion Papers - 1995
The degree to which credit markets discipline sovereign borrowers is investigated by estimating the supply curve for debt faced by US states. The results generally support an optimistic view of the market discipline hypothesis, with credit markets providing incentives for sovereign borrowers to...
Persistent link: https://www.econbiz.de/10005498146