Showing 1 - 10 of 65
We examine to what extent banks’ stock market values during the 2007-2012 financial crisis were driven by increases in the default risk of banks designated as globally systemically important by the Financial Stability Board. We find that bank market values hardly respond to changes in the...
Persistent link: https://www.econbiz.de/10010877758
The current financial crisis has sparked intense debate about how weak banks should be resolved. Despite international efforts to coordinate and converge on such policies, national policy advice and resolution practices differ. The resolution methods adopted in the Nordic banking crises in the...
Persistent link: https://www.econbiz.de/10008583712
Financial institutions are increasingly linked internationally. As a result, financial crisis and government intervention have stronger effects beyond borders. We provide a model of international contagion allowing for bank bailouts. While a social planner trades off tax distortions, liquidation...
Persistent link: https://www.econbiz.de/10008872219
Interbank claims are a concern to regulators as they might facilitate the dissemination of defaults and generate spill-over effects. Building on a simple model, this paper introduces a measure of the spill-over effects that a bank generates when it defaults. The measure is based on an explicit...
Persistent link: https://www.econbiz.de/10011257674
A substantial number of regulatory frameworks are commonly viewed by impartial observers as inordinately complex. Is there an explanation for this phenomenon? Employing a partial equilibrium model, this paper approaches the problem of complexity from a political-economy vantage point. It...
Persistent link: https://www.econbiz.de/10010877637
The effect of mandatory securities regulation on firm value has been a longstanding concern across law, economics and finance. In 2012, Congress enacted the Jumpstart Our Business Startups (“JOBS”) Act, relaxing disclosure and compliance obligations for a new category of firms known as...
Persistent link: https://www.econbiz.de/10010772270
We examine whether a corruption scandal in which the incumbent is implicated undermines trust in local government. We … data on the level of trust expressed in local politicians drawn from a new survey conducted in late 2009. We use matching … methods to improve the identification of the effect of corruption scandals on trust, comparing municipalities affected by a …
Persistent link: https://www.econbiz.de/10010877719
In this paper we investigate the long- and short-run relationships between disasters and societal trust. A growing body … determinants of social capital in general, and trust in particular. We present new cross-country and panel data evidence of another … important determinant of trust—the frequency of natural disasters. Frequent naturally occurring events such as storms require …
Persistent link: https://www.econbiz.de/10010877834
To investigate the relation between trust and formal institutions, we analyze bilateral trade patterns in a sample of … 16 European countries between 1996-2009. Trust in trading partners has a significant positive effect on bilateral trade …. However, our results suggest that trust and formal institutions are substitutes, as the positive effect of trust on trade is …
Persistent link: https://www.econbiz.de/10009294097
In Switzerland, two key church institutions – the Conference of Swiss Bishops (CSB) and the Federation of Protestant Churches (FPC) – make public recommendations on how to vote for certain referenda. We leverage this unique situation to directly measure religious organizations’ power to...
Persistent link: https://www.econbiz.de/10010723526