This paper discusses the relationship between premia for macroeconomic risk in banking, aggregate behavior, and banking crises. We consider a competitive banking system embedded in an overlapping generation model subject to repeated macroeconomic shocks. We highlight how risk premia decline when...

This paper studies the question to what extent premia for macroeconomic risks in banking are sufficient to avoid banking crises. We investigate a competitive banking system embedded in an overlapping generation model subject to repeated macroeconomic shocks. We show that even if banks fully...

We explore the impact of sophistication in risk management as required by Basel II on banking stability and market conditions. We compare a competitive banking system in which only average ratings are available with a competitive system in which banks are able to assess the default risk of...

We investigate the question of whether sophistication in risk management fosters banking stability. We compare a simple banking system in which an average rating is used with a sophisticated banking system in which banks are able to assess the default risk of entrepreneurs individually. Both...

This paper provides a macroeconomic perspective for government interventions in banking crises. We illustrate how vulnerabilities of the banking sector may build up over time and thus destabilize a banking system. A crisis occurs when a large number of banks fail to meet capital requirements or...

"Uncertainty" is used broadly to refer to things that are unknown or incompletely understood. In operations management, basic sources of uncertainty may include decision uncertainty, model uncertainty, analytical uncertainty, data uncertainty, and so on. Although uncertainty is unavoidable in...

This dissertation attempts to construct a theory which states that forms of enterprise are determined to a large extent by potential market failure. In the four independent, but closely interrelated chapters, I derive this hypothesis through theoretical reasoning, and suppose it by referring to...

This dissertation comprises three essays on theoretical analysis of middlemen in intermediated markets. Chapter 1 gives a brief survey on the market intermediation literature and also briefly describes the subsequent chapters.In Chapter 2 I study the role of horizontally differentiated middlemen...

This dissertation comprises three essays on theoretical and empirical issues in industrial organization. Chapter 1 outlines the issues explored in the subsequent chapters and briefly describes their conclusions.Chapter 2 explores how product differentiation impacts the incentive compatibility...

This dissertation consists of three essays. In the first one (Chapter three), âGains and Losses from Household Formation,â I introduce a general equilibrium model, wherein a household may consist of more than one member, each with their own preferences and endowments. In these models at first,...