Narrow search
Showing 1 - 10 of 79
Cover Image
Balance sheet capacity and endogenous risk
Danielsson, Jon; Song Shin, Hyun; Zigrand, Jean-Pierre - London School of Economics (LSE) - 2011
Banks operating under Value-at-Risk constraints give rise to a welldefined aggregate balance sheet capacity for the banking sector as a whole that depends on total bank capital. Equilibrium risk and market risk premiums can be solved in closed form as functions of aggregate bank capital. We...
Persistent link: https://www.econbiz.de/10010884614
Cover Image
Multiple-bank lending: diversification and free-riding in monitoring
Carletti, Elena; Cerasi, Vittoria; Daltung, Sonja - London School of Economics (LSE) - 2004
This paper analyzes banks’ choice between lending to firms individually and sharing lending with other banks, when firms and banks are subject to moral hazard and monitoring is essential. Multiple-bank lending is optimal whenever the benefit of greater diversification in terms of higher...
Persistent link: https://www.econbiz.de/10010745086
Cover Image
Loan maturity and renegotiation evidence from the lending practices of large and small banks
Albertazzi, Ugo - London School of Economics (LSE) - 2007
Corporate finance theories suggest that problems of asymmetric information and moral hazard in credit markets can be …
Persistent link: https://www.econbiz.de/10010745643
Cover Image
Procyclical leverage and value-at-risk
Adrian, Tobias; Shin, Hyun Song - London School of Economics (LSE) - 2013
The availability of credit varies over the business cycle through shifts in the leverage of financial intermediaries …
Persistent link: https://www.econbiz.de/10011171761
Cover Image
Recovery rates, default probabilities and the credit cycle
Bruche, Max; Gonzalez-Aguado, Carlos - London School of Economics (LSE) - 2006
a model in which this dependence is the result of an unobserved credit cycle: When times are bad, the default … ignoring the dynamic nature of credit risk could lead to a severe underestimation of credit risk (e.g. by a factor of up to 1 ….7 in terms of the 95% VaR). Also, the model indicates that the credit cycle is related to but distinct from the business …
Persistent link: https://www.econbiz.de/10010746498
Cover Image
Does the underground economy hold back financial deepening? Evidence from the Italian credit market
Gobbi, Giorgio; Zizza, Roberta - London School of Economics (LSE) - 2007
regional credit markets we find a strong negative impact of the share of irregular employment on outstanding credit to the … outstanding credit to households, both expressed as ratios to GDP. Conversely, the feedback effects from financial deepening to … labour on banks’ entry decisions in the local credit markets, now defined in terms of provinces. …
Persistent link: https://www.econbiz.de/10010744823
Cover Image
Dimensional analysis using toric ideals: primitive invariants
Atherton, Mark A.; Bates, Ronald A.; Wynn, Henry P. - London School of Economics (LSE) - 2014
Classical dimensional analysis in its original form starts by expressing the units for derived quantities, such as force, in terms of power products of basic units etc. This suggests the use of toric ideal theory from algebraic geometry. Within this the Graver basis provides a unique primitive...
Persistent link: https://www.econbiz.de/10011163495
Cover Image
The value of insolvency safe harbours
Paech, Philipp - London School of Economics (LSE) - 2015
‘Safe harbour’ is shorthand for a bundle of privileges in insolvency which are typically afforded to financial institutions. They are remotely comparable to security interests as they provide a financial institution with a considerably better position as compared to other creditors should...
Persistent link: https://www.econbiz.de/10011264787
Cover Image
On the relationship between personal experience, affect and risk perception: the case of climate change
van der Linden, Sander - London School of Economics (LSE) - 2014
Examining the conceptual relationship between personal experience, affect, and risk perception is crucial in improving our understanding of how emotional and cognitive process mechanisms shape public perceptions of climate change. This study is the first to investigate the interrelated nature of...
Persistent link: https://www.econbiz.de/10011126008
Cover Image
Regulators as agents: modelling personality and power as evidence is brokered to support decisions on environmental risk
Davies, G.J.; Kendall, G.; Soane, E.; Li, J.; Rocks, S.A.; … - London School of Economics (LSE) - 2014
Complex regulatory decisions about risk rely on the brokering of evidence between providers and recipients, and involve personality and power relationships that influence the confidence that recipients may place in the sufficiency of evidence and, therefore, the decision outcome. We explore...
Persistent link: https://www.econbiz.de/10011126122