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The Information View of Financial Crises

Dang, Tri Vi - 2019

Short-term debt that can serve as a medium of exchange is designed to be information insensitive. No one should be tempted to acquire private information to gain an informational advantage in trading that could destabilize the value of the debt. Short-term debt minimizes the incentive to acquire...

Persistent link: https://www.econbiz.de/10012480021

Risk Taking, Limited Liability and the Competition of Bank Regulators

Sinn, Hans-Werner - 2001

imposed solvency constraints on banks. However, these constraints may not survive in systems competition, as systems … competition is likely to suffer from the same type of information asymmetry which induced the private market failure and which … brought in the government in the first place (Selection Principle). As national solvency regulation creates a positive …

Persistent link: https://www.econbiz.de/10012470046

Unilateral Tariff Liberalisation

Baldwin, Richard - 2010

Unilateral tariff liberalisation by developing nations is pervasive but our understanding of it is shallow. This paper strives to partly redress this lacuna on the theory side by introducing three novel political economy mechanisms with particular emphasis is on the role of production...

Persistent link: https://www.econbiz.de/10012462058

Lending Booms, Reserves, and the Sustainability of Short-Term Debt : Inferences from the Pricing of Syndicated Bank Loans

Eichengreen, Barry - 1999

This paper analyzes the determinants of spreads on syndicated bank lending to emerging markets, treating the loan-extension and pricing decisions as jointly determined. Compared to the bond market, our findings highlight the role of international banks in providing credit to smaller borrowers...

Persistent link: https://www.econbiz.de/10012471681

The Financing of R&D and Innovation

Hall, Bronwyn H. - 2009

Evidence on the "funding gap" for investment innovation is surveyed. The focus is on financial market reasons for underinvestment that exist even when externality-induced underinvestment is absent. We conclude that while small and new innovative firms experience high costs of capital that are...

Persistent link: https://www.econbiz.de/10012463325

Is Investor Rationality Time Varying? Evidence from the Mutual Fund Industry

Glode, Vincent - 2009

We provide new empirical evidence suggesting that the marginal investor in mutual funds behaves differently across market conditions. If the marginal investor allocates capital across mutual funds rationally, then the relative performance of funds should be unpredictable. We find however that...

Persistent link: https://www.econbiz.de/10012463611

Bank Relationships, Business Cycles, and Financial Crises

Hale, Galina - 2011

relationships during 1980-2009 time period, we construct a global banking network of 7938 banking institutions from 141 countries … a large negative impact on the formation of new relationships in the global banking network, especially by large banks …

Persistent link: https://www.econbiz.de/10012461302