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Lender of Last Resort and Bank Closure Policy

Freixas, Xavier; Parigi, Bruno Maria - CESifo - 2008

During the last decades a consensus has emerged that it is impossible to disentangle liquidity shocks from solvency shocks. As a consequence the classical lender of last resort rules, as defined by Thornton and Bagehot, based on lending to solvent illiquid institutions appear ill-suited to this...

Persistent link: https://www.econbiz.de/10005405802

Banking Supervision in Integrated Financial Markets: Implications for the EU

Stolz, Stéphanie - CESifo - 2002

I analyze the optimal design of banking supervision in the presence of cross-border lending. Cross-border lending could imply that an individual bank failure in one country could trigger negative spillover effects in another country. Such cross-border contagion effects could turn out to be...

Persistent link: https://www.econbiz.de/10005416491

Complex Financial Networks and Systemic Risk: A Review

Bougheas, Spiros; Kirman, Alan P. - CESifo - 2014

In this paper we review recent advances in financial economics in relation to the measurement of systemic risk. We start by reviewing studies that apply traditional measures of risk to financial institutions. However, the main focus of the review is on studies that use network analysis paying...

Persistent link: https://www.econbiz.de/10010764284

Bank Networks: Contagion, Systemic Risk and Prudential Policy

Aldasoro, Inaki; Gatti, Domenico Delli; Faia, Ester - CESifo - 2015

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest in non-liquid assets. Market clearing takes place through a tâtonnement process which yields the equilibrium price, while traded quantities are determined by means of a...

Persistent link: https://www.econbiz.de/10011155379

The Economics of Insurance, its Borders with Finance and Implications for Systemic Regulation

Thimann, Christian - CESifo - 2015

Global financial regulators are currently reflecting on the nature of the insurance business. Specifically, they are … trying to classify insurance into ‘traditional’ and ‘non-traditional’ activities, and to distinguish them from ‘non-insurance … international finance is ‘what is insurance and where does insurance end?’ This paper aims to elaborate on the economics of …

Persistent link: https://www.econbiz.de/10011165510

Contagion in Financial Networks: A Threat Index

Demange, Gabrielle - CESifo - 2015

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

Preferences for Redistribution and Pensions. What can we Learn from Experiments?

Tausch, Franziska; Potters, Jan; Riedl, Arno - CESifo - 2010

Redistribution is an inevitable feature of collective pension schemes. Nevertheless, it is still an open question what people’s preferences are regarding this form of redistribution. This paper reviews experimental evidence on preferences regarding redistribution and asks what this evidence...

Persistent link: https://www.econbiz.de/10008498990

Assessing the Efficiency of an Insurance Provider - A Measurement Error Approach

Jametti, Mario; Ungern-Sternberg, Thomas von - CESifo - 2003

The purpose of this paper is to compare the cost efficiency of private and public property insurance providers in … measurement errors and apply the model to a data set on 19 firms in housing insurance markets in Switzerland. We show that the … public insurance providers are about 20 per cent more cost efficient than their private counterparts. …

Persistent link: https://www.econbiz.de/10005181391

Is there a Role for an Active Fiscal Stabilization Policy?

Andersen, Torben - CESifo - 2005

This paper discusses the need and scope for an active fiscal stabilization policy. It is argued that the effectiveness of fiscal policy as a short run stabilizer does not depend on the long run multipliers of (balanced budget) fiscal policies. To the extent that activity can be affected by...

Persistent link: https://www.econbiz.de/10005196205

Investment Uncertainty, and Production Games

Flåm, Sjur Didrik; Ermoliev, Yuri - CESifo - 2004

coordinated production programs, featuring pooled resources - and also via adaptive procedures. Extra value - or an insurance …

Persistent link: https://www.econbiz.de/10005405922