Welfare economics, scope and performance of government, externalities, public goods, cost-benefit analysis, subsidies … addresses externalities, provided the social return is above a threshold. This paper argues that another consideration needs to … be brought into the mix - whether, in spite of the externalities, the private sector has an incentive to undertake the …

. Macroprudential policies ought to be motivated by market failures and externalities, but these can be hard to identify. They can also …

in terms of the specific negative externalities in the financial system that these policies are meant to address, and …