The determinants of default risk of banks in emerging economies have so far received inadequate attention in the … the economy. Public sector banks have shown significant performance in containing bad debts. Private banks have continued … to be stable in containing bad debts, as they have better risk management procedures and technology, which definitely …

This paper analyzes insurance demand under prospect theory in a simple model with two states of the world and fair … insurance contracts. We argue that two different reference points are reasonable in this framework, state-dependent initial … wealth or final wealth after buying full insurance. Applying the value function of Tversky and Kahneman (1992), we find that …

time take-up insurance for moderate risks at highly loaded premiums. This paper explores whether prospect theory, in … theory to insurance problems is the choice of the reference point. We motivate and explore two possible reference points …, state-dependent initial wealth and final wealth after buying full insurance. It turns out that particularly the latter …

individuals’ attitudes toward risk. It challenges the conventional view that the random lottery incentive mechanism introduces no … biases in inducing risk preferences …

Systemic risk now occupies centre stage in discussions of bank regulatory reform. Systemic risk is often seen as a … grappling with risk and uncertainty - and taking care to distinguish between the two - current efforts to construct a new macro … seeking to understand systemic risk, it becomes necessary to delve into micro-legal concepts such as property, trust, and …

institutions and have the highest deposit insurance in the world. And last but not least, German banks are numerous, perform poorly …In this paper, we investigate the claim that German banks are special compared to banks in other industrialised … economies. We show that banks are of particular importance to the German economy—as financial intermediary, as lender to the …

helpful in avoiding a further accelerated loss of confidence. But they are not costless. Like any guarantee, deposit insurance … respect. Nonetheless, to keep market discipline operational, it is important to specify when the extra insurance will end, and …

events. Our paper focuses on this insurance character of public goods. As for private actions against hazardous events, one … can distinguish between self-insurance (SI) and self-protection (SP) also in the context of public goods. For both cases … private provision game. An interesting aspect of considering public goods as insurance devices is the interaction with market …