Motivated by the build-up of shadow bank leverage prior to the financial crisis of 2007-2008, I develop a nonlinear … macroeconomic model featuring excessive leverage accumulation and endogenous financial crises to capture the observed dynamics and … to quantify the build-up of financial fragility. I use the model to illustrate that extensive leverage makes the shadow …

risk on a larger scale, inducing risk-taking. This effect is more pronounced when bank leverage constraints are looser, or …

activities. For this purpose, I propose a novel measure of synthetic leverage, which can be estimated based on publicly available … information. In the empirical application, I show that German equity funds have increased their risk-taking via synthetic leverage …

properties of the equilibrium investment behavior. The bilateral external benefits induce an investment multiplier effect. This … how it interacts with other important factors such as the costs of investment and the signaling incentives induced by …

Tax incentives are a key component of governments’ investment policy mix as they directly impact companies’ tax burden …. In this paper, we illustrate the EU’s tax attractiveness as investment location over time in terms of effective average …