The moral hazard incentives of the bank safety net predict that distressed banks take on more risk and higher leverage … include financial crises and are subject to different regulatory regimes (1985–1994, 2005–2014). We find that distressed banks …

challenges, especially for banks, which tend to produce multiple outputs and operate with considerable inefficiency. We estimate … Lerner indices for U.S. banks for 2001-18 using nonparametric estimators of the underlying cost and profit functions …, controlling for inefficiency, and incorporating banks' off-balance-sheet activities. We find that mis-specification of cost or …

of financial relations between U.S. banks and Chilean firms after socialist Salvador Allende took office in 1970 …. Business reports and stock prices suggest that firms were mostly unaffected by having fewer links with U.S. banks. Substitution … of financial relations towards domestic banks appears to be the key mechanism explaining these findings. …

are likely in the near future. -- banks ; comparative political economy ; financial regulation ; microprudential policy …