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We derive a model in which firms operate in an epidemic environment and internalize infections among their employees in the workplace. The model is calibrated to fit the properties of the Covid-19 epidemic. We show that firms have incentives to fight against infections and can do so very...
Persistent link: https://www.econbiz.de/10012258622
This study considers the efficiency of banking in Australia during the post-deregulation period 1988-2001. Since 1986 … their superior scale efficiency. However, this superior efficiency did not necessarily result in superior profits. Our … banks have used size as a barrier to entry to the new entrants in the post-deregulation period. Furthermore, bank efficiency …
Persistent link: https://www.econbiz.de/10011514045
A principal uses security bid auctions to award an incentive contract to one among several agents in the presence of hidden action and hidden information. Securities range from cash to equity and call options. "Steeper" securities are better surplus extractors that narrow the gap between the two...
Persistent link: https://www.econbiz.de/10010227234
risk of firm default. …
Persistent link: https://www.econbiz.de/10011958806
We develop a dynamic computational network model of the banking system where fire sales provide the amplification … across time of the growth rate of banking assets has a 'fat left tail' that corresponds to rare economic disasters. We also …
Persistent link: https://www.econbiz.de/10014490902
We study the implications of credit constraints for the sustainability of product market collusion in a bank-financed oligopoly in which firms face an imperfect credit market. We consider two situations, without and with credit rationing, i.e., with a binding credit limit. When there is credit...
Persistent link: https://www.econbiz.de/10011587934
Aggregated output in industrialized countries has become less volatile over the past decades. Whether this Great Moderationʺ can be found in firm level data as well remains disputed. We study the evolution of firm level output volatility using a balanced panel dataset on German firms that...
Persistent link: https://www.econbiz.de/10003720335
The purpose of this paper is to compare the cost efficiency of private and public property insurance providers in …
Persistent link: https://www.econbiz.de/10011507834
regularities by developing a new firmbased trade model wherein managers are risk averse. Higher volatility induces the reallocation …
Persistent link: https://www.econbiz.de/10011547934
We exploit the outset of a regulation seeking to improve judicial efficiency through the rearrangement of courts … reform on both judicial efficiency and Non-Performing Loans ratio. Furthermore, we identify heterogeneous effects based on … mechanism, we set up a causal mediation analysis to prove that the judicial system affects banks credit risk exposure both …
Persistent link: https://www.econbiz.de/10012485338