The aim of this article is to examine the threat of systemic risk posed by speculative OTC derivative financing to financial institutions and the efforts made by the regulators to reduce such risk. A critical and comparative analysis of the Anglo-American approach to regulate OTC derivatives is...

Using global data for the period 1960-99, Collier and Hoeffler estimate neighborhood arms races. They find that the level of military expenditure is strongly influenced by the expenditure of neighbors. The authors estimate an quot;arms race multiplier,quot; finding that an initial exogenous...