just obeying and, hence, to be irrational. In this paper we offer a different approach which postulates rationality of all …

This paper provides a theoretical analysis regarding the rationality of suicide attacks from an economist’s point of … psychological concepts of cognitive dissonance and terror management theory into our economic analysis, we demonstrate why … – although predicted by standard economic theory – defection is a phenomenon rarely observed. We finally present some policy …

liquidity risk and characterizes them. Both a solvency (leverage) and a liquidity ratio are required to control the …

We offer a multi-period systemic risk assessment framework with which to assess recent liquidity and capital regulatory … requirement proposals in a holistic way. Following Morris and Shin (2009), we introduce funding liquidity risk as an endogenous … outcome of the interaction between market liquidity risk, solvency risk, and the funding structure of banks. To assess the …

We propose a measure for systemic risk: CoVaR, the value at risk (VaR) of financial institutions conditional on other … institutions being in distress. We define an institution's (marginal) contribution to systemic risk as the difference between CoVaR … systemic risk contribution. We argue for macro-prudential regulation based on the degree to which such characteristics forecast …

This paper discusses methods to quantify risk and uncertainty in macroeconomic forecasts. Both, parametric and non … macroeconometric model of the Bundesbank for Germany. Forecast intervals that integrate judgement on risk and uncertainty are obtained. …