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On the Stability of Different Financial Systems
Fecht, Falko - EconWPA - 2003
An economy in which deposit-taking banks of a Diamond/Dybvig style and an asset market coexist is modelled. Firstly, within this framework we characterize distinct financial systems depending on the fraction of households with direct investment opportunities that are less efficient than those...
Persistent link: https://www.econbiz.de/10005076982
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Relationship lending and competition: Higher switching cost does not necessarily imply greater relationship benefits
Vesala, Timo - EconWPA - 2005
This paper studies relationship lending in a framework where the cost of switching banks measures the degree of banking competition. The relationship lender’s (insider bank’s) informational advantage creates a lock-in effect, which is at its height when the switching cost is infinitesimal....
Persistent link: https://www.econbiz.de/10005134694
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Sequential Models of Bertrand Competition for Deposits and Loans under Asymmetric Information
Bracoud, Frédérique - EconWPA - 2002
This paper analyzes sequential games of double-sided Bertrand competition in the deposit and credit markets, when banks …
Persistent link: https://www.econbiz.de/10005550896
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What is the Link Between Margin Loans and Stock Market Bubbles?
Ricke, Markus - EconWPA - 2003
As a reaction to the general suspicion that margin loans had been a key element of the stock market boom and crash of the late 1920s, the Federal Reserve Bank was empowered to regulate margin lending with the Securities and Exchange Act. The efficacy of the Federal Reserve's margin policy has...
Persistent link: https://www.econbiz.de/10005561621
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Debt-Deflation: Concepts, and a Stylised Model
Peter, Goetz von - EconWPA - 2005
credit crunch interferes with the accommodation necessary for stability. …
Persistent link: https://www.econbiz.de/10005126279
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Optimal Dynamic Nonlinear Income Taxes with No Commitment
Berliant, Marcus; Ledyard, John - EconWPA - 2004
We wish to study optimal dynamic nonlinear income taxes. Do real world taxes share some of their features? What policy prescriptions can be made? We study a two period model, where the consumers and government each have separate budget constraints in the two periods, so income cannot be...
Persistent link: https://www.econbiz.de/10005076610
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Trade Balance Constraints and Optimal Regulation
Quesada, Lucia; Chisari, Omar - EconWPA - 2005
We investigate the interactions between optimal regulation and external credit constraints. When part of a regulated … ¯rm is owned by foreign investors, a credit-constrained country who wants to send pro¯ts abroad has to generate enough … surplus in the trade account in order to compensate capital out°ows. We show that the credit constraint translates into a …
Persistent link: https://www.econbiz.de/10005076909
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Hidden Teacher Effort in Educational Production: Monitoring vs. Merit Pay
Jaag, Christian - EconWPA - 2005
This paper deals with the optimality of teacher incentive contracts in the presence of costly or limited government resources. It considers educational production under asymmetric information as a function of teacher effort and class size. In the presence of costly government resources and...
Persistent link: https://www.econbiz.de/10005076924
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A Note on Firms' Strategic Behaviour During an IPO
Weiss, Pia - EconWPA - 2002
When potential shareholders cannot observe the business conditions of the firms, the latter desiring to acquire capital by an IPO and operating under less favourable business conditions have a strong incentive to appear more successful.
Persistent link: https://www.econbiz.de/10005077052
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Efficiency-Enhancing Signalling in the Samaritan's Dilemma
Lagerlof, Johan - EconWPA - 2002
Suppose an altruistic person, A, is willing to transfer resources to a second person, B, if B comes upon hard times. If B anticipates that A will act in this manner, B will save too little from both agents' point of view. This is the Samaritan's dilemma. The logic of the dilemma has been...
Persistent link: https://www.econbiz.de/10005077070