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We model the behavior of dealers in Over-the-Counter (OTC) derivatives markets where a small number of dealers trade with a continuum of heterogeneous clients (hedgers). Imperfect competition and (endogenous) default induce a familiar trade-off between competition and risk. Increasing the number...
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-in tools; and bank leverage, welfare and regulation. Drawing on experts across disciplines — including Howell Jackson, John … occur in the future? This book draws on some of the world's leading experts on financial stability and regulation to examine …
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This paper argues that creditors reflect the financial-safety-net aspect of bank lobbying, plausibly considering the … connection between bank lobbying and government bailouts. Using a structural approach, I show that bank lobbying is negatively … associated with the occurrence of a run-like equilibrium, as is deposit insurance. The estimated effect on bank risk and value is …
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restricted or prohibited by regulation. Relying on the theories of institutional maintenance work and the endogenization of law … regulation. We show different rhetorical strategies employed by actors in the regulatory space and analyse how the views voiced …
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