in credit markets and the buildup of risk ex ante. During a systemic crisis, bailouts relax balance sheet constraints and … mitigate the severity of the recession. Ex ante, the anticipation of such bailouts leads to an increase in risk-taking, making …

insurer risk retention. We then use panel data on U.S. property liability reinsurance to test the model. The empirical results …

trade off between risk and return. Banks may mitigate the resultant excessive risk by costly monitoring, where greater risk … reduction requires more resources devoted to risk supervision. Hence, the excessive risk associated with moral hazard is … endogenously determined. We show that a drop in banks' cost of funds increases the risk tolerated by banks in a competitive …

substantially increasing the risk borne by contractors …

provision of marginal incentives, and applies the theory to explain variation in the form of compensation of over-the-road truck … of hauls in a way that is consistent with the theory. By contrast, we find that vehicle ownership, which defines a driver …

The paper studies the effects of tax policy on venture capital activity. Entrepreneurs pursue a single high risk …, progressive taxation as well as investment and output subsidies to the entrepreneurial sector …