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Based on Becker, Kane, Niskanen, and Peltzman's ideas, we develop a model to explain why deposit insurance is adopted even though policymakers are aware of its pitfalls in both theory and practice. In our model, the regulator acts as both a bureaucrat and an entrepreneur to maximize his...
Persistent link: https://www.econbiz.de/10012886290
Do short sales restrictions have an impact on security prices? We address this question in the context of a natural experiment surrounding the short sale ban of 2008 using a comprehensive sample of Canadian stocks cross-listed in the U.S. Among financial stocks, which were singled out by the ban...
Persistent link: https://www.econbiz.de/10003933290
This Article looks at the regulatory techniques that were adopted in a small but developed market, Canada, in response to the increasing integration of the North American economy and internationalization of capital markets. One of the most comprehensive experiments was the Multijurisdictional...
Persistent link: https://www.econbiz.de/10013155934
The paper examines whether there is an economic justification for a macroprudential approach to insurance regulation … based on the normative theory of regulation. First, the paper elaborates some basic foundations, such as the … characterisation of a macroprudential approach to financial regulation as well as an explanation of the functions the insurance …
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