We analyze whether financial integration will lead to lower national regulation of domestic banking activities. In our model, banks' efforts and public regulation can lower the probability of bankruptcy. We contrast the national case with an integrated banking market and find that banks will...

Emissions trading schemes on entity level are becoming more and more important in the context of controlling greenhouse gases. The directive on a Europe-wide trading scheme is a prime example. Prior to the start of such a scheme, a number of design features have to be agreed upon. Regarding the...

As emphasised in the beginning, the considerations presented here are very preliminary by nature. Nevertheless, some of the aspects discussed seem worth summarising. First, financial markets worldwide show a tendency of asymmetric regional "clustering" with newly emerging places challenging the...

Politicians and trade unions raise the issue of illegal employment in order to provoke support, voters feel negatively touched by the presence of illegal employment, often also associated with illegal immigration. In addition there was a severe discussion in Germany about passing a minimum wage...

As in the case with perfect foresight, under conditions of uncertainty investors respond to changes in the assets' relative returns. An increase in the expected return of one asset here typically (if both assets are not perfectly correlated) induces a shift, but not a plunge toward that asset....