We model the interaction between two economies where banks exhibit both adverse selection and moral hazard and bank regulators try to resolve these problems. We find that liberalising bank capital flows between economies reduces total welfare by reducing the average size and efficiency of the...

We model the interaction between two economies where banks exhibit both adverse selection and moral hazard and bank regulators try to resolve these problems. We find that liberalizing bank capital flows between economies reduces total welfare by reducing the average size and efficiency of the...

Vor dem Hintergrund eines sinkenden Schulmilchkonsums in Deutschland stellt sich generell die Frage, welche Faktoren für die Kaufentscheidung von Schulmilch wichtig sind und, ob unterschiedliche Konsummuster für einzelne Gruppen existieren. Dieser Beitrag erweitert bestehende ökonometrische...

The main challenge of forecasting credit default risk in loan portfolios is forecasting the default probabilities and the default correlations. We derive a Merton-style threshold-value model for the default probability which treats the asset value of a firm as unknown and uses a factor model...