In this paper we focus on fair value measurements in the Financial Crisis and its (continuing) aftermath. We consider different ways of measuring fair value; and we use the experience of economies under stress, and where markets deviate significantly from textbook models of symmetric information...

In standard Walrasian macro-finance models, pecuniary externalities such as fire sales lead to overinvestment in illiquid assets or underprovision of liquidity. We investigate whether imperfect competition (Cournot) improves welfare through internalizing the externality and find that this is far...

We offer a stress test framework in which interaction between regulated banks occurs through pecuniary externalities when they delever. Since banks are constrained to maintain their capital ratio higher than a threshold, the deleveraging problem yields a generalized game in which the solvency...

Governments often attempt to increase the confidence of financial market participants by making implicit or explicit guarantees of uncertain credibility. Confidence in these guarantees presumably alters the size of the financial sector, but observing the long-run consequences of failed...

Production efficiency and financial stability do not necessarily go hand in hand. With heterogeneity in banks' abilities to screen borrowers, the market for loans becomes segmented and a self-competition mechanism arises. When heterogeneity increases, the intensive and extensive margins have...

The paper investigates the competitive structure of the banking industry in five emerging Asian countries (Bangladesh, Indonesia, India, Philippines, and Vietnam) during the period 2005-2012. The results reveal that the trends of competition follow a V-shape or inverted V-shape. Almost of...

Governments often attempt to increase the confidence of financial market participants by making implicit or explicit guarantees of uncertain credibility. Confidence in these guarantees presumably alters the size of the financial sector, but observing the long-run consequences of failed...

In this paper we analyse the effects of financialisation on income distribution, before and after the Great Financial Crisis and the Great Recession. The focus is on functional income distribution and thus on the relationship between financialisation and the wage share or the gross profit share....

This paper investigated the changes in competitive behaviour of banks in sub-Saharan Africa, following the 2007/2008 global financial crisis. Using 481 bank-year observations from an unbalanced panel of 83 banks from six countries over the period 2008–2013. We employed the Panzar-Rosse model...

Since the early 1980s, financialisation has become an increasingly important trend in developed capitalist countries, with different beginnings, speed and intensities in different countries. Rising inequality has been a major feature of this trend. Shares of wages in national income have...