Admati, Anat R.; DeMarzo, Peter M.; Hellwig, Martin; … - 2012
analysis is relevant to the debate on bank capital regulation, and complements Admati et al. (2010). In that paper we argued … for assessing regulation. Other arguments made to support claims that "equity is expensive" are flawed. Like reduction in … subsidies, the effects of leverage reduction on bank managers or shareholders do not represent a social cost. In fact, we show …