banks and real economic activity. This paper contributes to this analysis by constructing a dynamic general equilibrium … model in which the balance sheet of banks affects the propagation of shocks. We use the model to conduct quantitative …

Evidence suggests that banks, like firms, face financial frictions when raising funds. The authors develop a … quantitative, monetary business cycle model in which agency problems affect both the relationship between banks and firms and the … relationship between banks and their depositors. As a result, bank capital and entrepreneurial net worth jointly determine …

difficult to assess the contestability of a banking market. Recent work suggests that the number of banks and the degree of …

disciplining banks' risk choice. Comparisons are conducted between equity, subordinated debentures (SD), and uninsured deposits (UD …) as funding sources. The model, adapted from Repullo (2004), analyzes the effectiveness of regulatory capital when banks … although all three instruments can induce market discipline on banks, equity weakly dominates SD and UD (with SD weakly …

The authors measure the economies of scale of Canada's six largest banks and their cost-efficiency over time. Using a … efficiency and economies of scale. The disaggregation of the data allows the authors to model Canadian banks as producing … technological and regulatory changes in the banks' cost functions, as well as time-varying bank-specific effects. The authors' model …