-based political connections as an instrument for bailout approvals. …

This paper investigates the effects of financial relief programs, commonly referred to as ‘bailouts’, on pollution. A … partial equilibrium soft budget constraint model of the firm is developed to identify the effect of bailouts on the emission … decisions of firms. The results from the model indicate that the expectation of bailouts increases ex ante emissions. A more …

and the build-up 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 the economy …-ante prudential policy. We also analyze the effects of bailouts on financial stability and welfare in the absence of ex …

This paper highlights why financial bailouts are an inevitable and necessary element in global efforts aimed at … ensuring that financial stability is sustained. How could such bailouts be conducted in such a way that moral hazard does not …

-equations model that specifies the probability of a bailout and banks' risk taking.We identify the effect of expected bailout …-2006. The marginal effect of risk with respect to bailout expectations is 7.2 basis points. A change of bailout expectations by …