Showing 1 - 3 of 3
We develop a model to show how shareholder-creditor agency conflicts interact with accounting measurement rules to influence the design of bank capital regulation. Relative to a benchmark autarkic regime, higher capital requirements mitigate inefficient asset substitution, but exacerbate...
Persistent link: https://www.econbiz.de/10014123783
We develop a general equilibrium model of competitive banks to examine the optimal design of bank regulation. There is a continuum of equilibria of the unregulated economy that feature varying relative sizes of the financial and real sectors. The unregulated economy underinvests (overinvests) in...
Persistent link: https://www.econbiz.de/10012953461
Persistent link: https://www.econbiz.de/10010205331