Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …

creating counter-cyclical incentives for banks to raise capital, and so encourage bank lending in bad times. They avoid the …

. Since these two decisions may be simultaneously made we use the number of private and government bank branches located in … probability of a firm to innovate is about 10 to 13 percent higher if the main lender is a private compared to a government bank … government involvement in the allocation of credit comes at the cost of lower corporate innovation and economic growth. …

-tech groups and direct information on each firm’s access to bank credit, high-tech firms are found to be more likely to be credit …

to competition between ISPs and to competition between contents. We also show that when (competitive) content providers …

infrastructure coverage but reduces social welfare by softening competition. …