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of a financial crisis: 1) Regulation creates two categories of financial institutions. The first class faces greater … subsidized funds to make riskier investments (including investments in the second class) without regulation compensating for … collapse and threaten the solvency of financial institutions. This model explains financial deregulation in Sweden in the 1980s …
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We examine the impact of various dimensions of financial reform on the likelihood of systemic and non-systemic banking crises. Using new financial reform measures for a large sample of developing and developed countries for the period 1973 to 2002, our multivariate probit modeling results...
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