Acharya, Viral V.; Le, Hanh; Shin, Hyun Song - 2016
this channel, one bank's capital policy affects the equity value and risk of default of other banks. In a model where such … externalities are strong, bank capital takes on the attribute of a public good, where the private equilibrium features excessive … implications of the model with observed bank behavior during the crisis of 2007-09."--Abstract …
