a self-interest for these other countries to bailout the defaulting country. A novel insight of the paper is that …

an econometric approach that addresses the endogeneity associated with governmental bailout decisions in identifying …

Despite a formal 'no-bailout clause', we estimate significant net present value transfers from the European Union to … differences across countries. We characterize bailout size and likelihood as a function of the economic fundamentals (economic … 'Northern view' (transfers weaken fiscal discipline). While a stronger no-bailout commitment reduces risk-shifting, it may not …

optimal bailout policy in the presence of this "doom loop". Rescuing banks with high domestic sovereign exposure is optimal if … these banks are sufficiently central in the network, even though that requires larger bailout expenditures than rescuing low …

We study optimal bailout policies in the presence of banking and sovereign crises. First, we use European data to …

competitors as the firms leaving the market. We quantify these effects in the case of the 1984 bailout of timber companies that … faced substantial losses on existing federal timber contracts. We predict that the bailout substantially increased sale … prices in subsequent auctions because firms that might have might have been induced to enter without the bailout tended to …

policy is non-targeted. The ex post benefits from a monetary bailout accrue in proportion to the number amount of leverage … bailout instruments is endogenous and characterize the structure of optimal bailouts …

when bailout policies treat large and small banks symmetrically. Large banks always take on more leverage than small banks … because they internalize that their decisions directly affect the government's optimal bailout policy. In equilibrium, small …