granular bank-county-level data, we show that household consumption smoothing in response to the CTS was easier in financially …

externalities between the two countries arise from cross-border bank ownership. The two countries face (i) a regulatory decision of … a decentralized way. In our benchmark model the two countries always agree on a centralized regulation policy. In … contrast, bailout policies are centralized only when international spillovers from cross-border bank ownership are strong, and …

stablecoin issuers raises the challenge of how to apply technology-neutral regulation so that similar risks are subject to the …

This paper investigates the impact of banking prudential regulation on sovereign risk. We show that prudential … regulation reduces sovereign risk and induces governments to spend more. As a result, countries with tight prudential regulation … have lower primary budget balances and accumulate more government debt over time. We find that prudential regulation …

One of the key questions in the study of regulation is whether the costs of regulatory compliance fall homogeneously on …

We develop a dynamic regulation game for a stock externality under asymmetric information and future market uncertainty …. Within this framework, regulation is characterized as the implementation of a welfare-maximization program conditional on …-consistent policy rules that implement the stochastic first best as long as a future market exists. We apply our theory to carbon …