equivalent, forms of Pigouvian taxes. This paper explicitly models individual banks'risk choices and shows that different … prudential instruments affect banks'risk-taking incentives differently. Thus, conflicts may arise between the micro and macro …

In much of the standard corporate finance literature in which sovereign debt is treated as a risk free asset, corporate … bond prices are seen to depend on idiosyncratic risk factors specific to the issuing company, with public debt playing an … a safety net for corporations in distress, markets'assessment of private credit risk takes on a completely different …

The standard measures of distress risk ignore the fact that firm defaults are correlated and that some defaults are … more likely to occur in bad times. The paper uses risk premium computed from corporate credit spreads to measure a firm …'s exposure to systematic variation in default risk. Unlike previously used measures that proxy for a firm's physical probability …

(related to short-run monitoring and the liability structure) that, combined with risk factors, tilt portfolios toward short …

mechanism by which government interventions contribute to banks'risk-shifting behavior as reported in recent studies on bank …

availability or tactical behavior. Instead, it seems to be explained by the desire to minimize inflation risk and, more importantly … require reducing risk and reshaping investor incentives. …