Behn, Markus; Haselmann, Rainer; Kick, Thomas; Vig, Vikrant - 2016
In this paper, we examine how the institutional design affects the outcome of bank bailout decisions. In the German … savings bank sector, distress events can be resolved by local politicians or a state-level association. We show that decisions … by local politicians with close links to the bank are distorted by personal considerations: While distress events per se …