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Englmaier, Florian; Wambach, Achim - CESifo - 2002

conventional contract theory. Our three key insights are: First, inequity aversion plays a crucial role in the design of optimal …

Persistent link: https://www.econbiz.de/10005766116

How Efficient is a Contestable Natural Monopoly?

Weichenrieder, Alfons - CESifo - 1999

This paper considers the efficiency of a contestable natural monopoly if consumers are heterogeneous and the monopolist can differentiate prices imperfectly. With restricted entry, the standard result in this case is that the monopoly offers a menu of price-quantity combinations which leads to...

Persistent link: https://www.econbiz.de/10005405906

Business Cycle Effects of Credit and Technology Shocks in a DSGE Model with Firm Defaults

Pesaran, M. Hashem; Xu, TengTeng - CESifo - 2011

This paper proposes a theoretical framework to analyze the impacts of credit and technology shocks on business cycle dynamics, where firms rely on banks and households for capital financing. Firms are identical ex ante but differ ex post due to different realizations of firm specific technology...

Persistent link: https://www.econbiz.de/10009324087

The Dynamics of Deposit Insurance and the Consumption Trap

Gersbach, Hans; Wenzelburger, Jan - CESifo - 2001

We investigate a banking system subject to repeated macroeconomic shocks and show that without deposit rate control, the banking system collapses with certainty. Any initial level of reserves will delay the collapse but not avoid it. Even without a banking collapse, the economy still converges...

Persistent link: https://www.econbiz.de/10005765725

Open Market Operations as a Monetary Policy Shock Measure in a Quantitative Business Cycle Model

Heer, Burkhard; Schabert, Andreas - CESifo - 2000

This paper presents a business cycle analysis of monetary policy shocks measured by disturbances to open market operations, i.e. the ratio of open market papers to non-borrowed reserves. We find empirical evidence for the usefulness of this policy measure, as it predicts significant declines in...

Persistent link: https://www.econbiz.de/10005094487

Financial Intermediation and the Creation of Macroeconomic Risks

Gersbach, Hans - CESifo - 2002

. We show that the risk allocation is efficient if there is no workout of banking crises. In this case, banks will shift … part of the risk to depositors. In contrast, under a workout of banking crises, depositors receive non-contingent contracts … generations, even if the underlying risk is small or zero. This provides a new justification for capital requirements. …

Persistent link: https://www.econbiz.de/10005051530

The Funds Concentration Effect and Discriminatory Bailout

Erlenmaier, Ulrich; Gersbach, Hans - CESifo - 2001

In the presence of macroeconomic shocks severe enough to threaten the liquidity or solvency of the banking system, the regulator can rely on the funds concentration effect to save long-term investment projects. Some banks are forced into bankruptcy with the result that other banks obtain more...

Persistent link: https://www.econbiz.de/10005406133

Intergenerational Risk-Sharing and Risk-Taking of a Pension Fund

Gollier, Christian - CESifo - 2007

facilitate intergenerational risk-sharing. In addition to the primary benefit of improved time diversification, this form of risk … results of the paper is that better intergenerational risk-sharing does not reduce the risk born by each generation. Rather …

Persistent link: https://www.econbiz.de/10005406337

Reputations, Relationships and the Enforcement of Incomplete Contracts

MacLeod, W. Bentley - CESifo - 2006

incomplete contract. It is shown that the efficiency of these solutions is very sensitive to the characteristics of the good or …

Persistent link: https://www.econbiz.de/10005766147

Observable Strategies, Commitments, and Contracts

Wärneryd, Karl - CESifo - 2014

We consider rules (strategies, commitments, contracts, or computer programs) that make behavior contingent on an opponent’s rule. The set of perfectly observable rules is not well defined. Previous contributions avoid this problem by restricting the rules deemed admissible. We instead limit...

Persistent link: https://www.econbiz.de/10011086457