This study provides the first attempt to evaluate whether a logit early warning system (EWS) for systemic banking crises can produce better predictions when political indicators are used alongside traditional macro-financial indicators. Based on a dataset covering 32 advanced economies for the...

H.-W. Sinn, Präsident des Münchner ifo-Instituts für Wirtschaftsforschung sowie einflußreicher wie medienpräsenter neoliberaler Ökonom, formuliert auch in seinem neuen Buch zur Umweltökonomie pointiert und provokant (vgl. zuletzt "Ist Deutschland noch zu retten?", BA 1/04; "Die...

Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank to undercapitalise and finance overly risky business projects. To counter this market failure, national governments have imposed solvency constraints on banks. However, these...