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firms that are facing solvency shocks. We apply their framework to banking and extend the framework to admit the analysis of …
Persistent link: https://www.econbiz.de/10005419679
debate on free banking, in particular the issue of whether private institutions would fare well as lenders of last resort. <p …> In our model, the first-best LOLR scheme always covers the whole banking sector and offers full insurance to the …
Persistent link: https://www.econbiz.de/10005648930
The global financial crisis of 2007–2008 has given rise to new regulatory initiatives to put restrictions on the size and the term of bankers' pay. We revisit both theoretically and empirically the question of whether these regulations are justified. We model bonuses as a series of sequential...
Persistent link: https://www.econbiz.de/10010734434
the model to US banking data and show that lengthening the standard one-year bonus payment interval has no material impact …
Persistent link: https://www.econbiz.de/10011207862